Aquarius Platinum launches $260m raising

Aquarius Platinum plans to raise $260 million through a placement and rights issue, with part of the funds to be used for its acquisition of Ridge Mining.

The company said it intends to place up to 46.3 million new shares representing up to 14.2 per cent of the existing issued capital to both new and existing institutional investors.

The placement is being conducted through an accelerated book-building process to be carried out by Merrill Lynch International while Euroz Securities will act as co-lead manager.

Aquarius said the placement is conditional on a minimum raising of $A115 million.

The company added that the price for each of the shares under the placement and rights issue have yet to be determined.

Meantime, the company has proposed to raise additional funds of up to ZAR 650 million ($A98 million) through convertible bonds.

The minimum denomination for the bonds will be ZAR1 million ($A151,312) and will be listed on the Johannesburg stock exchange only.

FirstRand Bank will underwrite ZAR500 million ($A76 million) of the bond issue.

Aquarius said part of the proceeds will be used to restart its Everest platinum mine in South Africa, which may cost up to ZAR250 million.

Meanwhile, Aquarius said it will launch a takeover for Ridge Mining subject to the successful outcome of the capital raising and convertible bond issue.

The company said it will issue one Aquarius share for every 2.75 Ridge shares.

Part of the funds generated from the raising will be used to acquire operating and capital expenditure commitments of Ridge, which operates the Blue Ridge Mine in South Africa.

Aquarius said some ZAR310 million ($A47 million) will be allocated towards the acquisition.