JOHANNESBURG (miningweekly.com) − TSX-, Aim- and JSE-listed platinum-miner Eastern Platinum announced on Tuesday that it had received formal letters of commitment to underwrite a $100-million financing package.

The additional finance would be used to part fund the construction of a concentrator and other development efforts at the company’s Mareesburg project in South Africa.

The lead arrangers include South Africa’s Standard Bank and London-based UniCredit.

The two banks would underwrite the debt on a 50:50 basis at initial interest rate of US London interbank offered rate (Libor) plus 3,85%, rising to US Libor plus 4,15% for the last three years of the loan. The loan would run over a six-year period, but included an 18-month grace period.

The platinum-miner noted that the underwriting commitments were subject to acceptable legal documentation and conditions. If all parties were satisfied, the company would have about $450-million in cash and undrawn credit facilities available for development of its Eastern Limb projects and other corporate purposes.

The Canadian company also owns the Crocodile River mine and the Spitzkop project in South Africa’s platinum-rich Bushveld Complex.

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