This old article is one I may have missed and its a report regarding talks and the transaction was not finalised at that point...
What happened? and did the larger transaction partnership mentioned turn out to be Zijin?
“PERTH (miningweekly.com) - South Africa-focused platinum developer Nkwe Platinum on Friday said it was still in discussions with the African Mineral Exploration and Development Fund (AMED) and its black economic-empowerment partner Genorah Resources, regarding its recapitalisation.
The miner went into a trading halt at the start of this year, after a term sheet entered into between Nkwe, Genorah and Gleneagles Securities lapsed. Genorah, in turn, paid back the outstanding loan, which amounted to some A$2.8-million, through a refinancing deal with AMED.
Although the details of the Nkwe recapitalisation were still being finalised, the miner said on Friday that the transaction would see AMED become a significant shareholder in Genorah, and through that position, would enable Genorah to recapitalise Nkwe.
While the transaction was still being finalised, a working capital facility of A$4.5-million had been approved, and secured against Genorah’s shareholding in Nkwe.
Nkwe said the facility would provide the company with working capital funding while AMED, Genorah and Nkwe finalised the larger strategic partnership transaction."
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Founding Partner David Twist...Wasnt he also involved with Bengwenyama re CC in 2010.? Also a founding member of Platmin, which I didnt know.
so it seems 2013 talks involved.... AMED fund ( can I insert Bengs ex backers?) lent to NKWE or Genorah ? so that Gleneagles debt was paid...
AMED became a significant shareholder of Genorah and then, was further $4.5 mil working capital made available to Genorah? ....
I remember Maredi had to make comment through a lawyer or similar at the time the Gleneagles debt surprised many on HC...
I dont understand these arrangements especially as one article puts Genorah as NKWE Platinums BEE “partner”
and the other analyst type link says
“Nkwe Platinum Limited operates as a subsidiary of Genorah Resources Ltd.”
see this link...with financial details ...dont know when compiled or accuracy...? http://cdn.macroaxis.netdna-cdn.com/invest/market/NKP.AX--fundamentals--Nkwe-Platinum-Limited
“Nkwe Company Summary
Nkwe competes with BHP BILLITON, RIO TINTO, FORTESCUE, ILUKA, and NEW HOPE. Nkwe Platinum Limiteds flagship projects include Garatau and Tubatse which cover an area of approximately 10 500 hectares in the eastern Limb of the Bushveld Complex in South Africa. Nkwe Platinum Limited has a strategic partnership with Zijin Mining Group. Nkwe Platinum Limited is based in Hamilton Bermuda. Nkwe Platinum Limited operates as a subsidiary of Genorah Resources Ltd.”
******************Sorry but I never understood the structure of the cos.
If Zijin buy all of Genorahs NKWE shares....how would that effect the structure? IF NKWE is a subsidiary? Is that why a total buyout is discussed on HC?
If Genorah is the “black economic-empowerment partner” of NKWE who will replace them to satisfy BEE requirements? Is AMED in the picture? still or ever?
If the total buyout was neccessary would the Minister have to give their approval? I cant remember the details gathered on previous links re the new legislation.
I am thoroughly confused.
NKP Price at posting:
6.1¢ Sentiment: None Disclosure: Held
