Nkwe Platinum, with potential resources of up to 100 million oz of platinum group metals (PGMs) in South Africa’s Bushveld, is considering floating its shares on AIM and the Johannesburg Stock Exchange. Domiciled in Bermuda and already listed on the Australian market, Nkwe is poised to sign a deal giving Swiss-based mining giant Xstrata an option on 50 per cent of its Bushveld properties.

Xstrata can exercise its option once a bankable feasibility study into the project has been completed, by the end of next year. Steered by managing director Maredi Mphahlele, a South African mining project engineer, and with Peter Landau, Aussie boss of AIM-quoted Range Resources, on the board, Nkwe says the goal is to produce one million oz of PGMs a year from two mines.

The company, in which black economic empowerment group Genorah holds a 33 per cent stake, sold one property, De Wildt, to Xstrata for £6.6 million in February and now has £10 million cash and no debt. At a recent price of 32p, Nkwe is valued at nearly £60 million Down Under.

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