Nkwe Platinum updates lending agreement with Genorah
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Nkwe Platinum updates lending agreement with Genorah 04 September 2012Perth Reporter: Georgina Lavers
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Nkwe Platinum has provided an update to the security lending agreement involving Genorah Resources and its majority shareholding in the company.
“Nkwe, Genorah Resources and Gleneagles Securities have entered into a binding terms sheet which provides, amongst other things, for a 45 day stand still on the sale of any of Genorah's shares in the company,” said a statement from Nkwe.
Genorah has advised Gleneagles that it has secured financing in South Africa to pay back the outstanding loan of $2.8 million in the next 10-20 days irrespective of the stand still in place.
“More importantly, the terms sheet sets down the parameters for a transaction moving forward subject to various conditions precedent being satisfied over the next 4-6 weeks,” the statement went on to say.
The transaction would see a major South African based entity acquire a significant stake of Genorah's shares in Nkwe at $0.20 per share. Nkwe would then, subject to all necessary approvals, look to acquire for equity the remaining 26 percent BEE interest in its projects as part of a dual listing on the Johannesburg Stock Exchange.
If the transaction is completed, Nkwe will have new corporate and operational management.
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