Is money the obsticle? Probably Nkwe has already raised the...

Is money the obsticle? Probably Nkwe has already raised the capital. Does anyone else find it interesting that two Perth based companies Igc & Nkwe do the deal in London...We know why Nkwe was there.

International Goldfields Limited
18 Oxford Close
Leederville WA 6007
International Goldfields Limited ACN 118 108 615
18 Oxford Close, West Perth WA 6007
Phone: (08) 9388 0744 Fax: (08) 9382 1411
Media Release
17 September 2008
IGC appoints Grant Thornton as independent valuer for proposed Nkwe merger
Key points:
• International advisory firm Grant Thornton has been appointed to provide independent valuation of South African platinum holding,
• Parties on-track to having agreement in place by October 2008
Australian resources company International Goldfields Limited (“International Goldfields” or “the Company”) (ASX: IGC) has appointed leading advisory firm Grant Thornton to provide an independent valuation of its holding in three platinum-rich “farms” in the Bushveld complex in South Africa.
The appointment of an independent valuer comes as IGC steps up negotiations with fellow Australian platinum company Nkwe Platinum Limited (“Nkwe”) regarding a potential merger of the two companies. Representatives of both companies recently held positive meetings in London to further negotiations and since that time have continued these discussions.
On 7 August 2008 IGC confirmed that it had signed an exclusive Option Agreement with Nkwe in relation to IGCs’ 15% interest in the three “farms”, Hoepakrantz 291KT, Nooitverwacht 324KT, and Eerste Geluk 327KT that comprise the “Tubatse Project”.
Under the Option Agreement, which is valid for six months (with Nkwe being able to extend the option for a further six months), Nkwe paid IGC an option fee of A$100,000 and issued 2.5 million Nkwe shares to IGC.
The agreement gives Nkwe time to facilitate the acquisition of IGC’s 15 per cent interest in the Tubatse Project by way of a scheme of arrangement (i.e. cash and/or share offer to acquire all of the issued share capital of IGC).
The purchase price payable under the scheme of arrangement is to be based on two (2) independent valuations as an initial basis. If a scheme of arrangement is not implemented, Nkwe and IGC have agreed to pursue the sale of the 15% interest in the Tubatse Project by way of an asset sale.
Nkwe has already appointed an independent advisor and has already received its valuation, while IGC expects to receive its independent valuation by the first week in October.
International Goldfields Chairman Tony Sage believes Grant Thornton have the necessary skills required to conduct this important task and ensure that the proposed transaction with Nkwe remains on-track.
“Grant Thornton is a business advisory firm with international scope, specialising in a range of services including merges and acquisitions and independent expert reports,” Mr Sage said.
“Despite the six month option period, both parties are committed to the deal and expect to have an agreement finalised by the end of October 2008.”
International Goldfields is earning the 15 per cent interest in the Tubatse Project by spending US$10 million (A$10.4 million) on exploration.
Nkwe already holds an option to acquire a 59 per cent interest in the Tubatse Project. The option agreement with International Goldfields provides Nkwe with the option to increase its participating interest in the Tubatse Project to 74 per cent, subject to the receipt of necessary shareholder and regulatory approvals. South African black empowerment company, Genorah Resources (Pty) Ltd, holds the remaining 26 per cent interest in the Tubatse Project.
The JORC-compliant resource on portions of Nooitverwacht 324KT and Eerste Geluk 327KT was recently upgraded from 12.4Moz to 20.4Moz (3PGE + Au). The mineralisation potential of the Tubatse Project is independently estimated at approximately 60Moz and 67Moz 3PGE + Au (this includes the 20.4Moz JORC-compliant inferred resource).
ENDS
For further information please contact:
Tony Sage
Chairman
International Goldfields Ltd
Ph: 0419 905 908
David Tasker
Professional Public Relations
Ph: 08 9388 0944/ 0433 122 936
Em: [email protected]
Resource Upgrade Clarification
IGC would like to clarify that the resource upgrade recently announced by Nkwe Platinum Limited relates to the Garatau Project which IGC does not hold an interest in. The Garatau Project comprises two contiguous farms immediately north of the Tubaste Project in which IGC has a 15% interest in.