Monday, April 29th 04:12 PM IST

NKWE Platinum teams up with Zijin Mining to develop platinum assets

# NKWE Platinum  # Zijin Mining  # Platinum  # ASX:NKP  

The deal will allow Nkwe to develop its PGM assets and in particular the Garatau PGM project and becoming a significant producer of platinum group metals.

PERTH(BullionStreet): NKWE Platinum (ASX:NKP) has reported that it has entered into a strategic partnership with China's Zijin Mining Group, to develop its South African platinum group metals assets especially the Garatau Mining project.

Under the deal, Zijin via its wholly owned subsidiary Jin Jiang Mining will invest A$20 million in Nkwe by way of a 3-year convertible bonds, which are convertible after 12 months into 200 million Nkwe shares at a conversion price of A$0.10 per share.

Zijin will be given the exclusive rights to participate in mining projects in respect of Nkwe's mining tenements including the right of first refusal to finance project development and associated offtake rights on the basis of financing the development.

Zinjin will also appoint an executive director to a 5 person board of directors of Nkwe.

The deal will allow Nkwe to develop its PGM assets and in particular the Garatau PGM project and becoming a significant producer of platinum group metals.

The Garatau Project has a Measured Mineral Resource of 14.2 million ounces of 3 platinum group elements and gold and an Inferred Mineral Resource of 9.1 million ounces of 3PGE and gold across the two properties, Garatouw and De Kom.

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