Argonaut acted as Financial Advisor to facilitate the $90 million takeover between Nkwe Platinum Limited (“Nkwe”) and Gold Mountains (Bermuda) Investment Limited, a wholly owned subsidiary of Zijin Mining Group Co. Limited (“Zijin”).
Nkwe was an ASX Listed platinum company which engaged in the acquisition, exploration and development of platinum and associated base metal (PGE) projects in South Africa holding a 74% interest in the pre-development Garatau Project located in the highly prospective Bushveld Complex hosting an independently estimated Mineral Resource of 43.7Moz of three PGE & Au.
Zijin’s takeover proposal was structured as an $0.08 per share cash offer valuing Nkwe at approximately $70 million. As an existing substantial shareholder with a 60.5% interest, Zijin’s proposal sought to acquire the remaining shares not already held. Argonaut coordinated key discussions with Zijin providing recommendations and successfully negotiated a $0.02 per share increase in the offer price representing a 25% increase above the initial offer and a 233% premium to the last traded price prior to Zijin’s offer.
Zijin’s revised offer received the support and recommendation of the Nkwe Board and was well received by existing Nkwe shareholders with a majority of shareholders voting in favor of the proposal which became effective in March 2019.
Argonaut is delighted to have been involved in the process and congratulates Nkwe’s Board on delivering significant shareholder value.
Additional information regarding Nkwe can be found on the company’s website www.nkweplatinum.com.