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Eland sells shares for R350m
David McKay
Posted: Thu, 22 Mar 2007

[miningmx.com] -- ELAND Platinum Holdings, the JSE-listed platinum exploration company, is to sell shares to a Bahrain-registered investment house raising R350m, it said in an announcement.

The cash represents nearly half of the R800m the company requires to complete funding of its R1.46bn mine, situated on the western limb of South Africa's bushveld complex. Eland Platinum said the funds would be funelled into "corporate development".

At steady state production, Eland Platinum's opencast operation will deliver 160,000 oz of the four platinum group elements, while the underground operations will boost output to 270,000 oz of the four elements.

Eland Platinum said it would later announce more specifics on what it intended to do with the cash raised. First production from its mine is due next year with an underground expansion scheduled for completion in 2011.

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Eland said it issued five million shares for R70/each, a slight discount to the current share price of R70.75. The share is, however, up 8.5% in early trade March 22.

Al Rajhi Holdings bought the shares taking its overall stake in Eland Platinum to some eight million shares, equal to 11.2% of the listed company.

“This placement of shares confirms Eland Platinum’s position as a leading platinum investment," said Eland Platinum MD, David Salter.

"We look forward to making announcements in due course about the application of the funds raised,” he said.