Toronto, Canada — MININGREVIEW.COM — 10 December 2008 – Platmin Limited – a Toronto and AIM-listed mineral exploration and development company focused on platinum group metals in the Bushveld Complex of South Africa – is to sell shares to the Brian Gilbertson-led Pallinghurst Investment Consortium and the Bakgatla-Ba-Kgafela tribe, to finance the company’s Pilanesberg platinum project, in the North West province.
In a statement issued here, the company said it had previously planned to secure a project financing loan to complete. “It became clear, however,” it added, “that as both the credit and PGM commodity prices deteriorated such a facility could not be obtained on the envisaged terms.”
The statement explained that the funds would be raised in two tranches – Ivy Lane Capital, a vehicle of the Pallinghurst Investment Consortium, would buy about 185-million shares in Platmin. This would be followed by a second sale of around 73.5-million shares – either to the Bakgatla-Pallinghurst JV (BPJV) or to the Pallinghurst Investment Consortium itself – depending on whether certain conditions were met. The consortium is a partnership between Gilbertson’s Pallinghurst, American Metals & Coal International, NGP Midstream & Resources, Southern Prospecting and the Investec Group.
The BPJV already owns an indirect 27.61% in Platmin’s South African unit, Boynton, as a black-economic empowerment partner.
“The first transaction – which will give Pallinghurst a 62.4% stake in Platmin – will raise about US$125-million (R1.3 billion) towards the company’s Pilanesberg project, and is expected to close by 19 December,” said the statement.
It added that the second placement would be worth some R500-million, and would increase Pallinghurst and the BPJV’s combined ownership in Platmin to 69.8% of the company’s issued and outstanding shares.
Finally, a group controlled by the BPJV, the Moepi group, will exchange its 27.61% holding in Boynton for Platmin shares, which will consolidate ownership of the Pilanesberg project.
All told, Platmin will raise some US$175-million (R1.8 billion), which it expects will more than cover the completion of the 250 000 oz pa platinum-group metals and gold mine.
The Pilanesberg mine contains proven and probable reserves of 3.2-million ounces of PGMs plus gold, as well as 4.1-million ounces of resources in the measured and indicated categories.
To conserve cash, Platmin will place its other projects, on the Eastern Limb of the platinum-laden Bushveld Complex on care and maintenance.