Platinum Australia issues $23.2m in shares for mineral project

West Perth-based exploration company Platinum Australia Ltd has acquired an 80 per cent stake in the South Africa's Smokey Hills platinum project through the issue of 15 million shares with a deemed issue price of $23.2 million.

The sale agreement, signed in May 2005, had previously required PLA to pay 15 million Rand in addition to the share issue to the previous 100 per cent owners of the project, Smokey Hills Platinum Pty Ltd.

The 80 per cent stake will be held through PLA subsidiary PhokaThaba Pty Ltd, with five per cent remaining in the hands of the local community and 15 per cent owned by Corridor Mining Resources, a company owned by the Limpopo provincial government.

Platinum Australia managing director John Lewins said in an announcement that the company would now look to develop the project, having recently announced the placement of an order for two ball mills for the site's processing plant.