CEO James Allan
Johannesburg, South Africa --- 23 July 2012 - The Johannesburg Stock Exchange (JSE) is to have a new platinum exploration hopeful in Sable Platinum, which says in an announcement that it will reverse list into cash shell New Corpcapital. The listing is planned for 17 September.
Miningmx reports that the listing comes amid wide distress in the South African platinum sector where an oversupply of metal has depressed the platinum price which, coupled with double-digit increases in labour and power, has forced new projects into mothballs.
However, Sable Platinum CEO James Allan said he and his colleagues had a positive outlook for the platinum sector in the long term. “We obviously have a positive view on the medium- to long-term prospects for platinum. The global car pool is still growing.”
This refers to the demand for platinum and palladium in autocatalysis. Presently the Euro-zone, which accounts for about half the auto-catalyst market in diesel applications, has been flat-lining, especially as manufacturers have been shifting to palladium.
The key Sable Platinum asset is the 47Moz Klipfontein property, which is adjacent to the properties of Toronto-listed Platinum Group Metals (PTM). Sable has a 51% interest and PTM a 23% stake.
Allan will effectively relinquish his day-to-day duties at AllanHochreither, a private equity and consulting firm, in order to become the full-time CEO of Sable, retaining non-executive involvement as its Chairman.
René Hochreiter, for years a top-rated platinum analyst, will be Sable’s part-time technical director and also work at Allan Hochreiter.
Sable raised R65 million privately over the last two years and has been spending this money on drilling four of the five properties. There’s also about R45 million in Corpcapital, although in terms of Sable’s reverse takeover offer, its shareholders can extract half their cash.
If this happens, Sable Platinum will still have nearly R25 million, and with cash likely raised from the listing, Sable will be well on its way to being fully funded for exploration. In terms of previous statements, total drilling costs will be R186 million.
Source: Miningmx. For more information, click here.