[miningmx.com] — Platinum junior Platmin, which is developing mines in South Africa, on Thursday announced that it has raised $250m in new equity.
Platmin explores for, develops and operates platinum group metals (PGM) deposits in South Africa.
The company’s principal current focus is the Pilanesberg Platinum Mine, which is building up to full production.
It also holds platinum interests on the eastern limb of the Bushveld Complex.
Issuing a statement on the progress made with its fund raising, the company said it plans to issue almost 205.8 million new common shares at a price of $1.215 per common share for total consideration of $250m.
An aggregate of almost 95.4 million common shares are being underwritten by
RBC Capital Markets and Investec Bank Limited for gross proceeds of $115.9m.
The balance of $134.1 is being acquired directly from Platmin by Ridgewood
Investments (Mauritius), an indirect subsidiary of Temasek Holdings; Algemene
Pensioen Groep; and Platmin’s largest shareholder, Pallinghurst Investor Consortium.
‘In a strong financial position’
The offering of common shares is expected to close on May 13.
Platmin said as part of the funds-raising process $135m of convertible
debentures have been placed.
Pallinghurst has subscribed for $30m of convertible debentures with its
subscription on the same terms as that of Ridgewood, which subscribed for $100m.
Investec Bank has also subscribed for $5m of convertible debentures.
The convertible debenture private placement is also expected to close on May 13.
This means the total funding from the prospectus offering and private placement is $385m.
“During our recent funds-raising initiative we found strong support from our
existing and new shareholders for the PGM sector in general, and our initiatives in
particular,” said Platmin chairperson Brian Gilbertson.
“The conclusion of that process leaves Platmin in a strong financial position, well-placed to complete the development of the flagship Pilanesberg Platinum Mine, and to support any development initiatives in the region, particularly of near-surface, low-cost projects,” said Gilbertson.