The start of open pit
mining at Platinum
Australia’s Smokey
Hills project
 
Perth, Australia — MININGREVIEW.COM — 29 May 2009 – Platinum Australia Limited – listed on the Australian Stock Exchange and the AIM – has raised US$47.6 million (R430 million) through a private placement to repay debt for its Smokey Hills project in South Africa, to develop other new and existing projects, and for working capital.

Confirming this in a statement issued here, the company said it had placed 60 million shares with institutional investors at A$1.02 per share. It had also requested that the suspension of trading in its shares on the Australian Stock Exchange be lifted.

Earlier this week Platinum Australia signed a conditional agreement with Atla Mining Resources (Pty) Limited to acquire up to 70% of the Rooderand platinum project on the western Limb of the Bushveld Complex. The agreement is subject to completion of due diligence by PLA and the issuing of a prospecting right covering the project to Atla.

The statement explained that in terms of the agreement, PLA would earn an initial 30% interest in the project for payment of R13.5 million in cash, to be made on completion of the due diligence by 20 October 2009. PLA would earn a further 35% interest for sole funding the project until a feasibility study had been completed. It could then earn a further 5% for arranging the financing for the development of the project, and loaning Atla 9% of the funds required for such development.

The parties have agreed that Platinum Australia SA (Pty) Limited – a subsidiary of PLA – will manage the project.