S.Africa's Wesizwe in funding talks with the Chinese

South Africa's Wesizwe Platinum Ltd said on Tuesday that it was in advanced talks with a Chinese consortiumbentonite for drilling mud processing plant for an $877 million financing package, after it posted a first-half loss. Wesizwe, a mining exploration group, said the talks with China's Jinchuan Group Ltd and the China-Africa Development Fund were aimed at securing the funds in the form of debt and equity for its key Frischgewaagd-Ledig project.

"Wesizwe is in advanced discussions relating to the conclusion of this transaction and it is anticipated that legal agreements will be finalised over the coming months," newly appointed CEO Arthur Mashiatshidi said in a statement. The company - which became the sole owner of the Frischgewaagd-Ledig Project after getting approval from the Department of Mineral Resources in April - said that early preparatory works for the project had started. Wesizwe Platinum previously said it had agreed a 91 million rand interim financing deal with the Chinese for the Frischgewaagd-Ledig project.