Platinum Group Metals Ltd T.PTM

i consider this good news

[greener12345]

still say sell the company

South Africa: Angloplat to Get Big Stake in Wesizwe
Thabang Mokopanele
1 April 2010
Email|
Print|
Comment
Share:






Johannesburg — WESIZWE Platinum said yesterday it had experienced a difficult 12 months to last December, due to the global economic crisis and to changes to the board and management in the second half.
The company, which has reorganised and strengthened governance oversight and compliance, said it had emerged from last year's challenges "significantly" stronger.
Gross expenditure of R74,6m, mostly for the procurement of long-lead capital items, was still well below the R182,8m spent in 2008.

Operational activities resulted in a loss of R38,9m for the year. As an exploration and development company, Wesizwe does not generate operational revenue.
The reported losses were made up of cash disbursements into capital development activities which were intended to spur significant capital growth in the near term.

The company said the reported losses reflected project investment expenditure, which was the basis of its value- creation process until it can start actual mining production activities that generate revenue. Wesizwe said it was important that investors understood the distinction in interpreting the company's reported losses. The company had cash on hand of R111m at the end of the financial year, and management had designed flexibility in the execution of contracts to ensure effective cash-flow management. It also had access to a R550m draw-down facility, which remained undrawn for the year under review.
Relevant Links
Southern Africa
South Africa
Company
Mining
Business
In fulfilling the strategy of consolidating and rationalising mineral projects adjacent to Wesizwe's core project area, the Frischgewaagd-Ledig Complex, the company's shareholders approved a transaction that would result in it owning 100% of the Frischgewaagd-Ledig project.
The company said it would retain its 26% interest in the Western Bushveld Joint Venture, commonly known as Project Delta.
In consideration of the acquisition, the company would issue 211850125 shares to Rustenburg Platinum Mines, a subsidiary of Anglo Platinum.
On conclusion of Project Delta, Anglo Platinum would become the largest single shareholder in the company, holding 26,7% of Wesizwe's ordinary share capital.
The implementation of this transaction would increase Wesizwe's attributable platinum group metals resources by more than 20% from 13-million ounces to 15,7-million ounces.