[miningmx.com] — EASTERN Platinum announced on Tuesday it has filed a preliminary short form prospectus in connection with a public offering of common shares to raise approximately C$300m (about R2.1bn).
The offering will be conducted through a syndicate of underwriters led by Canaccord Genuity Corp and UBS Securities Canada Inc.
Eastplats is proposing to grant to the underwriters an over-allotment option to purchase additional common shares equal to up to 15% of the common shares sold pursuant to the offering, exercisable at any time up to 30 days after the closing of the offering. The offering is subject to certain conditions, including regulatory approval.
The offering will be priced in the context of the market with final terms to be determined at the time of pricing.
The offering is expected to close on or about December 8, 2010.
The company intends to use the net proceeds to fund Phase 1 of the Eastern Limb development plan as well as for general working capital purposes.
Trading in Eastplats’ shares will be halted on both the AIM market of the London Stock Exchange and on the Johannesburg Stock Exchange on Tuesday, pending finalisation of the terms of the proposed offering.
Eastern Platinum is a platinum group metals producer engaged in the acquisition, development and mining of PGM properties located in various provinces in South Africa.
All of the company’s properties are situated on the western and eastern limbs of the Bushveld Complex.
