JOHANNESBURG (miningweekly.com) – Shares in platinum group metals development company Bauba Platinum resumed trading on the JSE on Tuesday, after it reached an agreement to raise R8-million in cash and secured a credit facility of R3-million.

The cash investment would be made at R2,25 a share.

Trading in the platinum junior’s shares was halted in February, after it failed to reach an agreement to raise R7,2-million.

Bauba’s stock jumped 25% to R2,75 a share, when the voluntary suspension was lifted and closed the day at R2,50 apiece.

The company said it had reached an agreement with the vendors of its platinum rights on the terms and conditions and the implementation of a reinstatement agreement, including that the R8-million raised is placed in the trust account of Cliffe Dekker Hofmeyr (CDH) and CDH receives instructions to invest the funds.

The conditions must be fulfilled on or before March 25.

Bauba acquired its platinum properties from the shareholders of Ndarama Mineral Resources and Bauba A Hlabirwa Mining Investments.

Bauba also announced the appointment of Grant Pitt as acting CEO and director with immediate effect, as well as reinstating Dr Mathews Phosa as a director, after Pine Pienaar resigned as CEO in February, and Phosa resigned from the board of the company in December.

Pitt is a mining engineer with 26 years experience in the industry and has been with Bauba for six months. He has worked closely with the board to resolve the company’s recent challenges.

Chairperson Jonathan Best said the company can move ahead decisively to develop the Bauba project.

“The company plans to complete the logging and assaying of core recovered from the last boreholes drilled, and will update shareholders as soon as those results become available,” he noted.

In December, Bauba also halted trading after it became known that a subscriber had failed to take up R7,2-million worth of initial public offering shares.

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