Zimbabwe Platinum Mines (Zimplats) shareholders are considering plans for a rights issue in a bid to raise funds for the purchase of Impala Platinum's (Implats) stake in the Makwiro Mine.

The platinum outfit is seeking to raise around $39 million in order to land Implats' 30 per cent stake in the mine, with the share issue potentially introducing another 14 million shares for the firm on the Australian Stock Exchange.

If completed the deal would bring together ownership of the different facets of Zimplats' operations under one roof.

At present different ownership arrangements exist for the group's ore resources and processing facilities: with Zimplats owning the ore resources and operating the processing facilities through its 70 per cent stake in Makwiro.

In a statement released to shareholders Zimplats claimed that the "proposed simplification of the company" would "reduce administrative costs and eliminate potential cash leakages such as tax on tribute arrangements as well as simplifying arrangements with authorities in Zimbabwe and providing a more attractive vehicle for domestic and international lending institutions".

The Herald reports that a decision on the deal will be taken by shareholders at the general meeting scheduled for November 5th.