JOHANNESBURG (miningweekly.com) – ASX- and Aim-listed Platinum Australia has obtained a A$15-million bridging loan from Macquarie Bank to complete the repayment of a Standard Bank facility for the development of its Smokey Hills mine in South Africa.

In July, Platinum Australia made a part repayment of the Standard Bank facility for R200-million, funded from a R126-million profit on the closure of its platinum and palladium hedge book, and R74-million funded from cash received from the first tranche of its capital raising.

A balance of R126-million remained outstanding on the Standard Bank facility.

The repayment of the Standard Bank facility would give Platinum Australia immediate access to the cash flows from the Smokey Hills project, which would have been dedicated to funding the debt service reserve account, until at least June 2010.

The Macquarie bridging loan facility is payable in full by the end of August 2011, with no penalty for early repayment. It carries an interest rate of 8% a year, with a facility fee of 1,75%. The facility is secured by a floating charge over Platinum Australia’s assets.

Further, Platinum Australia would issue Macquarie Bank with more than 1,4-million options over ordinary shares in the company, exercisable at $1,05 a share. Should the facility not be repaid, then additional tranches of options over ordinary shares would be issued to Macquarie.

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