Northam issues R250m in notes to IDC

Paul Dunne, CEO, Northam Platinum

[miningmx.com] – NORTHAM Platinum has raised R250m after the state-owned Industrial Development Corporation (IDC) subscribed for new domestic medium-term notes, the platinum producer said.

“Northam is pleased to have the IDC as a funding partner. The confidence shown by the IDC in Northam is appreciated in light of the current adverse market conditions. This is a significant and important source of funding for Northam,” said Paul Dunne, CEO of Northam Platinum.

Northam last year raised R3bn in net cash after concluding a black economic empowerment deal in which it issued shares for $48/share. The company is currently trading at R39/share.

The proceeds will further strengthen Northam’s balance sheet and will be applied to the development of the company’s Booysendal expansion projects, the company said.

“Completion of the Booysendal projects will result in a significant expansion of Northam’s operating capacity as well as the creation of new employment opportunities,” said Dunne.