Perth-based Mineral Securities Ltd will acquire a further 11.5 per cent of Canada-based Platmin Ltd, taking its total stake to 27.2 per cent, for $C110.1 million, the company has announced.
The full text of a company announcement is pasted below
Mineral Securities Limited ("Minsec") is pleased to announce that it has entered into an agreement to purchase, in three tranches, 11,122,049 common shares representing up to 11.5% of the issued and outstanding shares of Platmin Limited ("Platmin"). After completion of the acquisition, Minsec will own 26,351,819 shares representing 27.2% of the issued and outstanding common shares of Platmin.
Platmin represents a major new entrant in the platinum group metals sector. Platmin's Pilanesberg project is planned to commence production in early 2009. Feasibility studies are also underway on two further projects, M'Phatlele and Grootboom.
Commenting today, Minsec CEO Keith Liddell said:
"I am very pleased that, following this acquisition, Minsec will materially increase its holding in Platmin and continue its participation in Platmin's growth as it moves to producer status."
"Importantly, this reflects our confidence that Platmin can achieve the critical production scale and mine life necessary to consider the construction of an independent smelter and refinery, giving Platmin a unique advantage over other platinum project developers."
Minsec is acquiring the securities for investment purposes and may acquire further common shares or dispose of its holdings of common shares both as investment conditions warrant.
Further details on the agreement to acquire the Platmin shares are contained in Annexure 1.
The acquisition is anticipated to be funded by Minsec's current cash reserves, existing facilities and Minsec has received expressions of interest from several banks in respect of providing further debt financing to complete the acquisition.
