Wesizwe Platinum, which is facing financial challenges, said its major shareholder had provided funding support since October, while a letter of support from China’s National Development and Reform Committee (NDRC) to extend funding beyond a cap of $1.52 billion was awaited.
Wesizwe said Wednesday that it was working with Jinchuan HK and Jinchuan Group to finalize the updated funding application report for the Bakubung Project, and it anticipates completing this process by the end of June 2025, the board said in an update about its going concern status.
The share price closed 8.1% lower at 34 cents on the JSE on Wednesday. Jinchuan Group holds a significant 45% stake in the mining company.
“The majority shareholder has reaffirmed their commitment to providing financial support to Wesizwe to meet its financial obligations. This includes extending the loans totalling $156 million that expired in December 2024, by three years to December 2027,” the directors said.
Additionally, since a previous update on October 14, 2024, the majority shareholder had made loan advances of $90.75m to Wesizwe for the Bakubung Project, they said.
The Bakubung Platinum Mine is Wesizwe's flagship project. Located some 40 kilometers northwest of Rustenburg, the project aims to access one of the last sizeable and viable Merensky and Upper Group 2 (UG2) chromitite PGM ore bodies.
“The directors of Wesizwe are confident that with the continued support of the majority shareholder and the anticipated approval from the NDRC, Wesizwe will secure the required funding to meet its financial obligations and achieve the operational completion of the Bakubung Project,” they said.
In a previous update, the miner’s independent auditor expressed a disclaimer of review conclusion due to the directors not being able to provide certain agreements from a major shareholder. This had raised doubts about the appropriateness of using the going concern basis of accounting.