Midtier platinum-miner Aquarius Platinum last week announced plans to raise between $233-million and $249-million through an equity capital raising and a convertible bond issue, to fund plans that formed part of its proposed acquisition of Ridge Mining.


The miner said in a statement to shareholders 
that it planned on placing 46,3-million new common shares, representing 14,2% of the company’s issued shares, at $0,05 a share, with new and existing institutional investors on March 31 and April 1 to raise about £125-million.

Further, the company planned to place senior 
secured convertible bonds on May 11 to raise R500-million, which could potentially 
increase the amount of convertible bonds 
issued to R650-million.

The minimum denomination of the convertible bonds, which would be listed only on the JSE, would be R1-million, it reported.

It expected the capital raising and convertible bond issue to be completed by May.

About R1,6-billion ($165-million) of the total of about R2,4-billion (about $240-million) capital raised would be used to repay a R1,5-billion bridging loan facility from Rand Merchant Bank, which was due on June 30.

Between R200-million and R250-million would be applied to the capital requirements to open up Aquarius’s Everest mine and about R310-million would be used for the capital and operating expenses of Ridge Mining.


In February, Aquarius had announced plans to acquire Ridge Mining, making a proposed all-share offer at an exchange ratio of one Aquarius share for every 2,75 Ridge Mining shares.

Aquarius now expected to sign an implementation agreement with Ridge Mining to make a firm offer for Ridge Mining, subject to the successful outcome of the capital raising plans and the arrangement of sufficient bridging funding for the continued operation of the Blue Ridge mine, it announced.

“We remain confident that the proposed transaction represents a desirable outcome for both companies and an important step in the development of Aquarius and, indeed, consolidation of the industry,” Aquarius CEO Stuart Murray commented.

The acquisition would further diversify Aquarius’s portfolio, increase its resource base and add new production ounces and longevity to its production profile, he added.


Meanwhile, Ridge Mining CEO Terence Wilkinson said in a statement that being part of a larger group would, to some extent, insulate its shareholders from the many problems facing smaller and single-mine producers in the current economic climate.

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