Standard Bank has granted conditional approval of a $37 million loan to fund Platinum Australia's development of its platinum mine at Smokey Hills in South Africa, it has been announced.

The funding will be added to the company's existing capital of $21 million earmarked for the development, which was raised through a share sale last year.

Removal of the last remaining financial hurdle means that the company now only requires a mining right to be issued by the South African Department of Minerals and Energy to enable it to commence the drive towards production.

Platinum Australia Managing Director John Lewins told Mining Weekly: "With the approval of the debt component of the funding for the Smokey Hills platinum-group metals project, Platinum Australia now has the complete funding necessary to develop the project.

"As we have already ordered the mills and transformer, we are in an excellent position to complete construction and move into full production in the shortest possible timeframe once we have received our mining right."

The company expects the mine to be operational in the second half of 2007 with plant commissioning due in March or April 2008, whereupon it is anticipated that it will yield some 95,000 ounces of platinum group metals annually.

Sources:

Platinum Australia secures debt finance for Smokey Hills project
17/05/07
http://www.miningweekly.co.za/article.php?a_id=109245

Platinum Australia says funding 'complete' for Smokey Hills PGM Project
17/05/07
http://www.hemscott.com/news/latest-news/item.do?newsId=43602508010947


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