Wesizwe Platinum's in `Final Stages' of Takeover Talks With Junchuan Group

Wesizwe Platinum Ltd., a South African explorer of the metal, is in the “final stages” of negotiations on a takeover of the company by Jinchuan Group Ltd., Chairman Dawn Mokhobo said today in Johannesburg.

Jinchuan, a Chinese metals producer, and the China-Africa Development Fund proposed buying 51 percent for $227.5 million and providing $650 million in loans to fund the Frischgewaagd- Ledig mine, the South African company said May 24. The project, northwest of Johannesburg, may produce 350,000 ounces of platinum and related metals a year, Wesizwe’s website shows.

Finance Director Arthur Mashiatshidi will replace Michael Solomon as chief executive officer at the end of next month, the company said in a statement today. Solomon was reinstated as CEO by a shareholders’ vote after Wesizwe’s board fired him and former chairman Robert Rainey in November, without saying why.

The company said in a separate statement a review of its governance by auditor Deloitte & Touche and lawyers Deneys Reitz Attorneys didn’t find any evidence of fraud against Solomon.

To contact the reporters on this story: Carli Lourens in Johannesburg at clourens@bloomberg.net;

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