Johannesburg, South Africa — MININGREVIEW.COM — 26 May 2009 – Emerging new generation platinum miner Wesizwe Platinum Limited has secured a R550 million standby equity facility with United States-based investment fund Yorkville Global Investments.
In a statement issued here today, Wesizwe said the facility would be in place for 36 months, giving it the option to access liquidity through issuing new shares. In terms of the deal, the investment fund would be obliged to subscribe for and purchase any new shares for a total value of up to R550 million.
“Not only does this facility provide us with complete flexibility to place shares over a period of time and raise the necessary tranches of capital, but it also limits shareholder dilution by only doing so if and when project value has been delivered,” said Wesizwe CEO Michael Solomon.
Any new shares would be issued at market related prices, according to the company.