WESIZWE Platinum Shareholders Overwhelmingly Approve the Chinese Consortium Investment, and the Company's AGM Successfully Concluded
09 March 2011
Johannesburg, 9 March 2011: Wesizwe Platinum is pleased to announce that at a General Meeting of shareholders held in Johannesburg today, the requisite number of shareholders indicated their approval to implement the transaction agreement between Wesizwe Platinum and Jinchuan Group Limited (Jinchuan), China Africa Development Fund (CADFund) and Micawber 809 (Pty) Limited (“Micawber”).
In terms of this transaction, the Company will receive an equity injection of US$227 million through Jinchuan and the CADFund subscribing for approximately 732.5 million Wesizwe Platinum shares, which constitutes 45% of the fully diluted issued share capital of Wesizwe Platinum. Micawber, a special purpose vehicle established to enhance black economic empowerment participation in Wesizwe Platinum, will subscribe for about 97.4 million ordinary shares, which constitutes 6% of the share capital of Wesizwe Platinum.
Wesizwe Chairman, Dawn Mokhobo, said: “We are pleased that shareholders have recognised this value proposition presented by the Chinese Consortium. Not only has the consortium provided a funding solution on very favourable terms, but the consortium members have also given shareholders a firm undertaking that their interest in Wesizwe Platinum will not be further diluted until the project has reached construction completion.”
The transaction remains subject to the fulfilment of a number of conditions precedent, which include approval of the South African Competition Authorities as well as all necessary Chinese regulatory approvals having been obtained by Jinchuan and CADFund.
Wesizwe CEO, Arthur Mashiatshidi said of the General Meeting: “Today’s shareholders’ approval marks a significant milestone towards the ultimate finalisation of this transaction. All energies are now focused on ensuring that the remaining conditions to the transaction are successfully achieved, which will then enable Wesizwe Platinum to commence full scale construction of its 350,000 ounce a year Frischgewaagd-Ledig PGM project.”
Wesizwe today also successfully held its Annual General Meeting, which was postponed by an Order of the Court on 19 August 2010 following an urgent application over who had the right to vote the shares of the Bakubung Community Development Corporation (BCDC) and the company, Newshelf 925. In January this year, the applicants withdrew their case and this allowed for the resumption of the AGM.