JOHANNESBURG (miningweekly.com) – JSE-, TSX-, and Aim-listed Platmin has concluded a R400-million, 12-month, renewable, revolving commodity financing agreement with Investec Bank.

The funds would be used for working capital purposes, Platmin said on Friday.

Investec would finance up to 91% of Pilanesberg Platinum Mines’ platinum, palladium, gold, copper and nickel deliveries to Northam Platinum, in accordance with a previously agreed-upon sale and treatment of concentrate agreement, which was concluded in October 2008.

The facility would result in Pilanesberg receiving the precious metal prices prevailing at the end of the month in which the concentrate is delivered rather than when payment is received in terms of the concentrate agreement, typically three to four months later. The facility carried an interest rate of about 7,05%, plus a margin of 3%.

“We are very pleased to have finalised and signed the agreements for the financing package with Investec Bank under the prevailing macro-economic environment,” said Platmin chairperson Keith Liddell.

In September, the company paid out and closed a R404-million bridging loan facility with Standard Bank.

Platmin’s Pilanesberg mine would produce about 250 000 oz/y of PGMs by the end of the year.

The midtier miner was also exploring for PGMs at three other key projects, namely Mphahele, Grootboom and Loskop, all situated in South Africa’s Bushveld Complex.

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