GoldenK, it's my understanding that all of the company's PGM projects are held by a 70% owned private holding company, Nkwe Platinum (South Africa) (Pty) Ltd, purely in order for the companies [Nkwe Platinum Limited and Genorah Resources (Pty) Ltd] to comply with SA BEE regulatory requirements for the processing of DMR applications.
"Nkwe SA owns 100% of all projects however under new Mineral and Petroleum Resources Development Act 2002 there is a requirement for BEE participation of 26% for private applications and 51% for state applications (until April 2005 thereafter 26%). Nkwe SA agreed a Black Economic Empowerment (BEE) transaction with Blue Nightingale Trading 709 (Pty) Ltd (Blue Nightingale) so that it will own 30% of the expanded issued capital of Nkwe SA. This effectively will give Blue Nightingale a direct interest of 51% over the areas held under the JV, given Blue Nightingales direct 30% stake in Nkwe SA."
It's quite clear from the 2010 Annual Report that the company's BEE partner and major shareholder is Genorah Resources;
"During the financial year ended 30 June 2007, Nkwe on a resolution of the Board, issued 63,000,000 shares to Genorah Resources (Pty) Ltd to acquire the prospecting rights on the Garatouw 282KT and De Kom 252KT farms. Although the transaction has taken place, the shares are yet to be allotted to Genorah pending South African regulatory approval. As such the Company has recognised the value of the shares to be allotted as share capital in equity at the date of issue at a prevailing share price of $0.99.
During the prior financial year the shares were allotted to a bare trustee who is holding the shares in trust until South African regulatory approval has been gained at which time the shares will be transferred to Genorah.
In addition a further 63,000,000 common fully paid shares were issued to Genorah during the year ended 30 June 2009 upon Nkwe establishing a Joint Ore Reserves Committee Code compliant resource of 20 million contained 5PGM+Au ounces on the farms. These shares were also allotted to the bare trustee who is holding the shares in trust until South African regulatory approval has been gained at which time the shares will be transferred to Genorah.
Following shareholder approval at the 2008 Annual General Meeting, the Company exercised the option it held with Genorah and acquired 59% of the farms Hoepakrantz 291 KT, Nooitverwacht 324 KT and Eerste Geluk 327 KT. Consideration for the acquisition was 250,000,000 shares issued to Genorah which were also allotted to the bare trustee who is holding the shares in trust until South African regulatory approval has been gained at which time the shares will be transferred to Genorah."
