This page includes Regulatory news filings supplied by issuers listed on the BSX. Please note the BSX is not responsible for the content, accuracy or completeness of announcements filed by issuers and disclaims all liability for any loss arising from reliance on information contained within issuer announcements.
PALLINGHURST ANNOUNCE ACQUISITION OF A CONTROLLING INTEREST IN PLATMIN LIMITED
Jersey, Channel Islands - 11 December, 2008 - Pallinghurst Resources (Guernsey) Limited (Ticker: PALLRES.BH) announce the acquisition of a controlling interest in Platmin Ltd.
Proposed Transaction highlights
Ø Delivering control of Platmin to the PGM Consortium and the PGM SPV, who on completion of the Proposed Transaction will acquire a shareholding of 69.84% in Platmin
Ø Providing a publicly listed platform to potentially consolidate PGM SPV's PGM interests
Ø Significant milestone in achieving Pallinghurst's stated strategic objectives, including the exchange of PGM SPV's unlisted indirect investment in Boynton into Platmin shares
Ø Providing sufficient equity funding to Platmin (USD 175 million) to complete its core Pilanesberg Platinum Mine construction
Ø As a consequence of the Proposed Transaction, Standard Bank has agreed to roll and provide Platmin with a bridge facility of up to R450 million until 31 December 2009
Ø Platmin will be fully funded, unhedged and lowly leveraged with first production of PGM concentrate scheduled for March 2009 - targeting up to 250,000 oz of PGMs per annum (150,000 oz of platinum)
Ø The Pilanesberg Platinum Mine will be an open cast, lowest cost-quartile PGM producer with cash costs of approximately USD 400/oz (3PGE + Au) after base metal credits and with operating margins of approximately 40% at prevailing spot PGM basket prices
Ø Implementing the Moepi Exchange will simplify the Platmin corporate structure and provide Platmin with a 100% interest in Boynton and control over its cash flows
Ø Platmin's growth projects on the eastern limb of the BIC provide upside potential when PGM prices recover
Ø Pallinghurst raises approximately R335 million to fund the PRGL Entitlement through the Vendor Placement at a price of ZAR 4.30 per share, a 4.23% discount to the 3 day VWAP per share on 9 December 2008
CEO of Pallinghurst Arne H. Frandsen said: "The Platmin transaction is an important step forward in broadening our participation in PGMs. We are creating a new low cost producer in the Western Bushveld, which is totally unhedged with attractive further consolidation potential. Our firm focus initially however will be on getting the Pilanesberg Platinum Mine into production - on time and within budget".