RBPlat to hold off on equity raise

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RBPlat to hold off on equity raise

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Published Date: 2018-04-09 | Source: Stephen Gunnion | Author: Stephen Gunnion

RBPlat to hold off on equity raise

The platinum producer says given current market conditions, now is not the right time to issue new shares

Royal Bafokeng Platinum says it's holding off on plans to raise equity capital to help pay for its $70 million acquisition of Maseve Investments from Platinum Group Metals. The platinum producer says given current market conditions, it says now is not the right time to issue new shares and it has sufficient liquidity, cash and debt facilities to settle its obligations.

Maseve is the operating and holding company for the Maseve Mine, located on the Western Limb of the Bushveld Complex near Rustenburg in the North West province. It borders on RBPlat's Stydrift I project. Maseve started developing and constructing the mine in 2010 and it was commissioned two years ago. The deal includes Maseve's concentrator plant and certain surface assets, as well as the total issued capital of the Maseve mine. RBPlat says the deal gives it immediate access to an operational concentrator plant to treat the ore it mines from Styldrift I and also gives it the option to extend the life-of-mine of the South Shaft Kerensky operations.

In November, RBPlat's shareholders authorised it to issue up to 37-million new shares for cash to boost its position. However, its shares have been under pressure, falling 30% over the past year. The group has been affected by weaker prices for platinum group metals and a strengthening rand.

On Friday, RBPlat said all surface rights relating to the acquisition of the concentrator plant had been transferred into its name and it had paid for and taken ownership of the plant.



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