Platinum Australia seeks to raise $40m

Platinum Australia is seeking to raise $40 million via a placement and a rights issue to provide development and operational capital for its Smokey Hills project in South Africa.

In a statement to the Australian Securities Exchange, Platinum said it hoped to raise $15 million via the placement at a price of 59 cents per new share.

The company hopes to raise a further $25 million via a 1 for 7 accelerated non-renounceable rights issue at an offer price of 56 cents per new share.

"The Equity Raising will involve the issue of up to 71.3 million ordinary shares and represents approximately 22 per cent of Platinum Australia's issued capital," the statement said.

As well as developing the Smokey Hills project, Platinum said it hoped to provide the funds to its new contractor JIC Mining Services, to achieve nameplate production capacity.

It will also use the funds to continue exploration at its Kalahari Platinum and Rooderand projects.

The placement and the rights issue have are fully underwritten by UBS AG Australia Branch and RBC Capital.