Ridge Mining revealed yesterday (14th May) that it expects its Blue Ridge mining project to reach full pgm production by the third quarter of 2009, Mining Weekly reports.

The project, located on the eastern limb of the Bushveld Complex in South Africa, is eventually expected to generate 125,000 oz 4E (platinum, palladium, gold and rhodium) per year.

In partnership with subsidiary Blue Ridge Platinum, the company oversaw the delivery of the first concentrate from the mine to Impala Refining Services early last month.

Their plans also received a major boost yesterday when it was confirmed that new finance has been secured to provide the necessary working capital for the development.

A R186 million loan - repayable in 14 semi-annual instalments - will be provided by the Industrial Development Corporation and the Development Bank of Southern Africa, Mining Weekly reports.

In addition, FirstRand Bank has offered a R200 million senior-secured bridging facility through its Rand Merchant Bank division, which must be repaid by 31st December.

Ridge Mining Chief Executive Officer Terence Wilkinson revealed that the loans mean that the project has much less debt than he was previously expecting to shoulder.

"The new financing package has been a requirement since the project's senior debt was repaid in February, following the unwinding of the project hedge book," he told the news provider.

Blue Ridge has raised R541 million through closing its hedge book, while Aquarius Platinum made an all-share bid for Ridge Mining in February.

If the Aquarius offer is accepted, the world's fourth-largest platinum producer will take over the bridging loan - after receiving a fee from the lenders - before providing it as a long-term secured funding facility.

Source:

Blue Ridge secures funding for SA PGM mine (14/05/09)

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