RBPlat embarks on a R1 billion rights issue
The proceeds will fund the upgrade of its Maseve concentrator plant.
Royal Bafokeng Platinum (RBPlat) has announced plans to conduct a R1 billion rights issue in order to finance the upgrade of the Maseve concentrator plant bought last year from Platinum Group Metals (PTM) for $58 million.
The proceeds of the rights issue will also go towards lifting metal-bearing ore production to 230,000 tons a month from 150,000 tons at its Styldrift project
In terms of the offer, which is nearly 75 percent supported by shareholders, RBPlat will issue about 46.8 million shares at a subscription price of R22 per RBPlat share.
The Maseve transaction, which also included $12 million to settle claims against Maseve, was settled via RBPlat’s available cash and debt facilities.
“Having considered its near-term capital requirements and taking into account prevailing market conditions, the company has determined that now is an opportune time to raise equity capital to replenish the cash and debt facilities utilised by the company … and fund the necessary upgrades to the Maseve plant and related infrastructure, as well as the ramp up of Styldrift to 230,000 tonnes,” the company said in a statement.