Wesizwe Platinum is looking for potential financiers from the Middle East and China to help fund a $600 million mine building project, Reuters confirmed yesterday (19th November).

The South African firm is planning to commence construction of its Frisch-Ledig mine at the end of this year and has earmarked around $34 million in cash for the process.

However, Chief Executive Michael Solomon has explained that it needs additional funding and that it will be exploring a range of avenues, such as sovereign wealth funds and private equity investors.

Speaking in an interview with the news provider at the Platinum Congress in London, he commented: "We're having to look at non-conventional markets, we're having to look at other markets where there are different value propositions and there's appetite.

"The value proposition to investors in the Middle East would be very different to the value proposition to somebody in China. We're tailor-making value propositions. We're having to be very creative."

The move is a change from the company's original strategy - generating $300 million of equity on western markets - which was curbed by the dramatic fall in platinum prices in the past eight months.

Mr Solomon also confirmed that Wesizwe will be splitting the project by raising smaller amounts at a time in order to ensure that its shareholders do not receive excessive dilution.

If the project goes to plan, production will commence in 2011 and output at the mine will hit a steady 350,000 oz PGM by 2015.

Source:

Wesizwe seeks finance from Mideast, China for mine (19/11/08
http://africa.reuters.com/country/ZA/news/usnLJ388126.html