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Update on Maseve Project
WESIZWE PLATINUM LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2003/020161/06)
JSE code: WEZ ISIN: ZAE000075859
(the "Company" or "Wesizwe")
UPDATE ON MASEVE PROJECT
Shareholders are advised that at a meeting of the shareholders of
Maseve Investments 11 (Pty) Limited (“Maseve”), the operating
company of the WBJV Project 1 Platinum Mine (the “Project”),
Platinum Group representatives were informed via Africa Wide
Mineral Prospecting and Exploration (Pty) Limited (“Africa Wide”)
that Africa Wide, a subsidiary of Wesizwe, would not be funding
a ZAR213 million (approximately US $ 21.8 million) cash call for
its 26% share of a 6 month forward budget for the Project. The cash
call to Africa Wide for the Project had been timed to coincide with
the final expenditure of funds held in escrow by Maseve for Africa
Wide.
Wesizwe’s 26% interest in Maseve was derived from the conclusion
of the 2008 “Project Delta Agreements” which saw the rationalisation
of rights between Anglo American Platinum Limited, Platinum Group
Metals Limited (“PTM”) and Wesizwe Platinum Limited. In the process
of the rationalisation, PTM earned the right to increase its interest
in Maseve to 74%. The proceeds of PTM’s increased interest in Maseve
were escrowed by Maseve on behalf of Wesizwe to partially fund Wesizwe’s
interest in the development of the Project (the original escrowed amount
was ZAR408.81 million).
The Company considered the cash call and the project fundamentals in
detail, which included a definitive due-diligence review supported by
third party experts, and concluded that the Project does not satisfy
its investment criteria under current market conditions.
In terms of the Maseve shareholder’s agreement, any non-participation
in the funding by Africa Wide and the subsequent continued funding by
PTM could result in the dilution of Africa Wide’s equity interest in
Maseve. The aforementioned potential dillutionary effect is uncertain
at this stage and in the event of it materialising, shareholders would
be duly informed thereof in a further announcement.
Wesizwe wishes to confirm that its 100% held Bakubung Minerals Project
remains firmly on track, within budget and well-funded. Shareholders
are referred to Wesizwe’s recently announced interim results for further
details in this regard.
For any enquiries, please contact:
Paul Smith
Chief Operating Officer
Wesizwe Platinum Limited
Tel: +27(11) 994 4600
Johannesburg
21 October 2013
Sponsor:
PSG Capital Proprietary Limited
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