Xstrata South Africa, Genorah Resources and Nkwe Platinum...

Xstrata South Africa, Genorah Resources and Nkwe Platinum Wednesday said it have signed
a binding heads of agreement granting Xstrata an exclusive option to acquire a 50%
interest in five PGM properties (collectively the farms Hoepekrantz, Nooitverwacht,
Eerste Geluk, Garatouw and De Kom) situated on the Eastern Limb of the Bushveld Igneous
Complex.
A valid New Order Prospecting Right has been granted over the Properties by the
Department of Minerals and Energy.
Nkwe and Genorah are currently conducting a Bankable Feasibility Study (BFS) over the
Properties and have already delineated a significant resource base of over 20 million PGM
ounces, with an independently assessed target mineralisation base of approximately 100
million PGM ounces.
The Properties have the potential to achieve an annualised production of 1 million PGM
ounces.
The Option is exercisable following the completion of the Bankable Feasibility Study,
expected to be completed by the end of 2009, and is subject to the grant of the necessary
regulatory approvals.
Simultaneously with the BFS, the parties have undertaken to jointly investigate the
feasibility of establishing a downstream smelting and refining business on the Eastern
Limb of the Bushveld Igneous Complex.
On exercise of the Option, Xstrata will acquire a 50% participation interest in the
Properties from Nkwe and Genorah.
The parties will form a joint venture, in which Xstrata's interest will be 50%,
while Nkwe and Genorah will collectively have an interest in the remaining 50%.
Following the exercise of the Option, Xstrata will fund the total development costs of
the Properties from mining through to concentrating.
The joint venture will extend to any contiguous properties currently (or in the future)
under the control of any of the Parties, (over and above the Properties referred to
above).
Chief Executive of Xstrata Alloys, Peet Nienaber commented: "This transaction
provides Xstrata with entry into the prospective Eastern Limb region and access to a
significant, continuous PGM block. The joint development of these properties with Nkwe
and Genorah, together with a downstream processing operation, will provide significant
growth in mined production and refining for all partners, helping to establish
Nkwe/Genorah as an independent, integrated producer of scale and adding further growth
potential to our rapidly developing platinum business."
Xstrata Coal also announced Wednesday it has secured Xstrata plc's board approval
to proceed with the AUD1.1 billion development of the Mangoola Coal open cut thermal coal