Platmin Limited announced yesterday (December 9th) that it has sold a majority stake for $175 million which will enable it to complete the construction of its Pilanesberg platinum mine.

The deal will see Ivy Lane Capital, the investment vehicle of the Pallinghurst Investor Consortium, and the Bakgatla-Ba-Kgafela Tribe acquire 49.9 per cent and 50.1 per cent of the company respectively.

Keith Liddell, the incoming Chairman of Platmin, expressed his satisfaction at the move as it will help to finish the Pilanesberg project, which is currently 85 per cent complete in terms of pre-production capital costs.

He said: "We are very pleased to announce this major financing in difficult markets and to recognise the support of Pallinghurst and the Bakgatla Community.

"This transaction will secure the future of Platmin and allow it to complete the construction of the Pilanesberg Mine Project and hence become a major low-cost independent platinum producer."

Furthermore, the company confirmed that it intends to purchase a 10MW diesel standby generator to protect against further Eskom power shortages, although the open-cast nature of the mine means operations would not be affected.

Ian Watson, Chief Executive of Platmin, added that he was delighted at the news and that the company expects the mine to produce 250,000 oz PGM per year, with cash costs in the lowest quartile across the industry.

"With financing of the Pilanesberg Platinum Project now secured, we look forward to completing its development and bringing on stream this exciting project," he said.



Source:

Platmin announces US$175 million equity financing to fund the Pilanesberg Mine construction (09/12/08)
http://www.newswire.ca/en/releases/archive/December2008/09/c8209.html