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Option to Acquire IGC 15%
Nkwe has entered into an exclusive Option Agreement with IGC in relation to IGC’s 15% interest in the three Tubatse farms which form part of the properties the subject of the Nkwe/ Genorah /Xstrata joint venture referred to above (refer map above).
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 3PGE + Au (this includes the 20.4Moz JORC-compliant resource).
Upon exercise of the option by Nkwe, Nkwe and IGC agree to facilitate the acquisition of the 15% 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 will be agreed using two (2) independent expert’s valuations as an initial basis. If a scheme of arrangement is not implemented, Nkwe and IGC agree to pursue the sale of the 15% interest in the Tubatse Project by way of an asset sale. Settlement will be conditional on the receipt of all necessary governmental, regulatory, shareholder and third party approvals and consents.
Nkwe already holds an option with Genorah to acquire a 59% interest in the Tubatse Project. The option agreement with IGC provides Nkwe with the option to increase its participating interest in the Tubatse Project to 74%, subject to the receipt of necessary shareholder and regulatory approvals. Genorah holds the remaining 26% interest in the Tubatse Project.
Under the Option Agreement, which is valid for 6 months (with Nkwe being able to extend the option for a further 6 months) Nkwe will pay IGC an Option Fee of A$100,000 and issue 2.5 million fully paid ordinary Nkwe Platinum shares.
For Further information please contact:
Maredi Mphahlele
Managing Director
Tel: +2711 445 2161
[email protected]
Peter Landau
Executive Director
Tel: +61 407 751 115, +44 774 757 7815
[email protected]
David Tasker