Under the terms of the deal, Zijin will invest the funds in Nkwe through 3-year convertible bonds that can be converted into 200 million Nkwe shares after 12 months at a conversion price of A$0.10 per share.

Further, Zijin will secure exclusive rights to participate in mining projects of Nkwe’s mining tenements including the right of first refusal to finance project development and associated off-take rights on the basis of financing the development, the company said.

Commenting on the partnership, Nkwe Platinum managing director Maredi Mphahlele stated that the alliance with Zijin would allow company to become a significant producer of platinum group metals through development of the projects.

"Zijin are one of China’s leading major mining houses who see Nkwe’s PGM assets as a key focus as they look at the expansion of their overseas mining operations," added Mphahlele.

In addition, the key terms of the convertible bonds to be issued includes an interest payable at the rate of 10% per annum with the conversion allowed only 12 months after their issue.