JOHANNESBURG (Business Day) --The deal was announced when Xstrata launched a $10 billion bid for Lonmin .
Nkwe, listed on the Australian Stock Exchange, is 48% owned by Genorah Resources.
Nkwe director Mxoleli Nkuhlu said yesterday it granted Xstrata an option to take a 50% interest in five properties on the eastern limb of SA's Bushveld complex because it was seeking a partner with expertise and financial resources.
Nkwe has already undertaken some exploration on the properties and estimated they contained 20-million ounces of platinum group metals (PGMs) . The objective is to prove up 100-million ounces, which would support a mine producing 1 million ounces of PGMs a year.
Xstrata can exercise its option on completion of the bankable feasibility study, and would earn its interest by funding the mine costing $1.6-$2 billion.
Nkwe intends listing simultaneously on London's AIM and the JSE by the end of October.
