File image: Reuters

South Africa's Wesizwe Platinum said on Friday it had finalised an $877 million financing package with a Chinese consortium to develop a major project, sending its shares up more than 6 percent.

The funds would be used to develop the Frischgewaagd-Ledig project, which is expected to produce 350,000 ounces a year in platinum group metals (PGMs), with platinum the main metal at full production.

Shares in the junior mining exploration group rose 6.6 percent to 2.10 rand by 09:52 SA time, compared with a 0.19 percent fall in Johannesburg's All-Share index .

Wesizwe said China's Jinchuan Group Ltd (JNMC) and the China-Africa Development Fund (CADFund) would pay $200 million for a 45 percent stake in the South African company.

Micawber, a special purpose vehicle owned by an empowerment trust that was formed to boost black participation in Wesizwe, would pay $26.6 million for a 6 percent stake in the company.

Wesizwe said JNMC and CADfund would also secure $650 million in debt for the company and commit to provide any additional funding required to complete the project.

Wesizwe's output is expected to be much lower than that of Anglo Platinum and Impala Platinum , the world's top two producers which account for roughly two-thirds of the world's platinum supply.

South Africa's platinum supply is expected to rise slightly next year after falling a bit in 2010 on safety-related stoppages and strikes, a key refiner said last month. - Reuters