The West AustralianBusinessNkwe Platinum targets International...

The West Australian

Business
Nkwe Platinum targets International Goldfields
KATE EMERY
277 words
6 August 2008
The West Australian
Second
48
(c) 2008, West Australian Newspapers Limited

Tony Sage’s International Goldfields is expected to unveil a takeover proposal from Nkwe Platinum today, tipped to value the company at as much as $140 million, after its suitor secured a farm-in deal with a major platinum producer over the Genorah Farms project in South Africa.

It is understood Nkwe is set to swallow International after signing a potentially large deal on Monday with an unknown platinum producer to farm into a handful of Genorah leases, over which it has an option to acquire 59 per cent and International has a right to earn up to 15 per cent.

The identity of Nkwe’s new partner is unknown but it is thought to be one of the big players — Xstrata, Anglo Platinum, ZimPlats or Aquarius Platinum. The size of the deal is also unclear, though Nkwe paid $275 million last year to exercise its option over the project.

It is believed a price for the proposed merger between International and Nkwe has not been fixed but will be tied to the value of the Genorah project, thought to contain millions of ounces of platinum and located in the rich Bushveld Complex’s eastern limb. It is unknown if the bid will be cash or scrip.

A source close to the deal suggested last night the offer could be north of $1 a share and as much as $1.20, a hefty premium to the company’s last traded share price of 54.5¢.

Nkwe, which went into a trading halt on Monday, was last traded at 98¢.

International’s shares were placed in a trading halt yesterday.