JOHANNESBURG (miningweekly.com) - Diversified JSE-listed mining company Pallinghurst saw its share price fall nearly 3,5% on Tuesday when it announced that it would raise R800-million of new equity in a fully preplaced and underwritten rights offer.

The company, chaired by mining icon Brian Gilbertson, said that the R800-million in incremental equity capital would enable it to commit more to its four platinum, steelfeed materials, coloured gemstones and Fabergé growth platforms.

"Three of our four investment platforms are now approaching operating status and some additional funding is required to realise the full potential of all four," Gilbertson said.

Pallinghurst CEO Arne Frandsen pointed out that the company had achieved absolute funding certainty at a time of international capital volatility.

The capital to be raised would enable Pallinghurst to participate, along with its strategic equity partners, in dilution-avoiding pro rata funding entitlements.

The R800-million would be raised through an offer of 228-million new shares, at a price of R3,50 a share, representing a 12% discount to the 30-day volume weighted average share price.

Existing major shareholders had subscribed for R447-million of the R800-million, while Oasis Asset Management, Oasis Crescent Capital and Trinity Asset Management had irrevocably agreed to underwrite the remaining R353-million.

Unexercised rights would be allocated to the underwriters only after existing nonpreplacement shareholders had taken a decision on whether or not to follow their rights.

August 21 was set as the target date for the finalisation announcement, and September 7 for the distribution of a circular outlining the full terms of the rights offer.

Pallinghurst is the controlling shareholder of the JSE- TSX- and Aim-listed Platmin, which is producing platinum-group metals in the Pilanesberg area; the company is developing a steelfeed materials investment platform through Tshipi Manganese of the Northern Cape, and the ASX-listed Jupiter Mines iron-ore company of Australia; it is the controlling shareholder of the Aim-listed Gemfields, which has emerald mines in Zambia; and it is developing Fabergé, which will unveil a high jewellery collection in September.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.