Platinum producer Aquarius has announced plans to raise around $250 million in a move motivated in part by the company's impending takeover of Ridge Mining.

Aquarius released a statement on 17th February concerning the signing of a letter of intent relating to a possible all-share offer for Ridge Mining at an exchange rate of one Aquarius share for 2.75 Ridge Mining shares.

Bond and share sales have now been proposed by Aquarius, with around $33 million of the total due to be raised earmarked for the payment of capital and operating expenses at Ridge Mining.

Leftover money would be used to repay a bridging loan facility from Rand Merchant Bank and to cover the costs of opening up Aquarius' Everest mine.

The capital fundraising would be a precursor to a firm offer for Ridge Mining, Aquarius CEO Stuart Murray confirmed.

"We remain confident that the proposed transaction represents a desirable outcome for both companies and an important step in the development of Aquarius and indeed, consolidation of the industry," he commented.

Meanwhile, Ridge Mining today (26th March) unveiled its preliminary results for the year ended 31st December 2008.

Profits are set to rise to $27.1 million from the 2007 level of $17.7 million, largely as a result of an increase in value of the company's hedge book.

However, Blue Ridge chief executive Terence Wilkinson believes the company would be better served in the current economic conditions if the merger with Aquarius went ahead.

He went on to say that a larger company would also have more opportunity to take advantage of the potential at Sheba's Ridge, for which Ridge Mining has recently completed a feasibility study.

Mr Wilkinson also confirmed the mining company would be at full production by the end of 2009.



Sources:

Aquarius Platinum to Raise $249 Million to Buy Ridge (26/03/09)

http://www.bloomberg.com/apps/news?pid=20601116&sid=aCMPs4uejABY&refer=africa

Aquarius Platinum, Ridge Mining expect to sign implementation deal regarding Acquisition prior to 27 March (26/03/09)

http://www.rttnews.com/ArticleView.aspx?Id=893814&SMap=1

Ridge Mining plc Preliminary results for the year ended 31 December 2008 (26/03/09)

http://miranda.hemscott.com/servlet/HsPublic?context=ir.access&ir_option=RNS_NEWS&item=118942676814605&ir_client_id=3936&transform=rns_story

Aquarius unveils plans to raise $249m related to Ridge acquisition (26/03/09)

http://www.miningweekly.com/article/aquarius-unveils-plans-to-raise-249m-related-to-ridge-acquisition-2009-03-26

Aquarius set to seal Ridge deal (18/02/09)

http://www.platinum.matthey.com/media_room/aquarius_set_to_seal_ridge_deal_19031982.html

Ridge Mining closes $54m pgm hedge position (26/02/09)

http://www.platinum.matthey.com/media_room/ridge_mining_closes_54m_pgm_hedge_position_19046974.html