Platinum Australia has announced it has raised funds as part of its efforts to launch its South African platinum group metal (pgm) projects.

The company has revealed it has raised US$10.6 million through the sale of 7.3 million shares and added that it saw strong investor demand for the shares.

The vast majority of the funds will be invested in the development of its South African operations, Platinum Australia revealed.

Some of this money will go towards a standby security deposit that the company needs as part of its financing of its Smokey Hills pgm programme on the eastern rim of the Bushveld complex, while most of the rest of the money will be poured into the continued exploration of the Kalplats Extended project.

Meanwhile, a small proportion of the funds will be used for working capital and for other minor projects.

Sources:

Platinum Australia raises funds for South African PGMs projects, 29/06/07
Platts

Platinum Australia raises 12.5 mln aud via placement at 1.72 aud/shr, 29/06/07
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