Wesizwe Platinum is on the brink of being taken over by a Chinese metals producer, it was confirmed yesterday (4th August).

Jinchuan has enlisted the support of the China-Africa Development Fund for a deal which would see it purchase a 51 per cent stake for $227.5 million.

Speaking in Johannesburg, Wesizwe Chairman Dawn Mokhobo revealed to Bloomberg that the transaction is now in its "final stages".

The move would also see $650 million in loans provided to fund development of the Frischgewaagd-Ledig mine, which has a pgm output target of 350,000 oz per year.

Wesizwe announced that the new ownership structure would see Finance Director Arthur Mashiatshidi replacing Michael Solomon as Chief Executive at the end of September.

Mr Solomon was reinstated by a shareholders' vote after the company decided to sack him and former Chairman Robert Rainey in November 2009.

After his departure, he will be on hand in an advisory capacity for a further six months, while also remaining as a non-executive director.

The Frischgewaagd-Ledig mine is located on the western limb of the platinum-rich Bushveld Complex in South Africa.

Sources:



Wesizwe Platinum's in `Final Stages' of Takeover Talks With Junchuan Group (04/08/10)



Mike Solomon steps down as Wesizwe CEO (04/08/10)

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