PERTH (miningweekly.com) – Crisis-ridden Platinum Australia requested the ASX to suspend trading in its shares on Friday after it failed to meet a capital-raising deadline.

Trade in the company’s shares was halted on November 9 at the request of the company, but was meant to resume on November 11 to coincide with a planned announcement. However, the platinum miner acknowledged on Friday that it did not expect the capital-raising exercise to be completed on time and requested a trade suspension.

The company also reported this week that its joint venture partner in the Rooderand project, in South Africa, was facing difficulties regarding the prospecting rights to the project. Platinum Australia singed a heads of agreement with Atla Mining Resources in 2009, under which the platinum miner could earn a 70% interest in the Rooderand project.

To date, the company has earned a 30% interest in the project by making an initial payment of R13.5-million, and would earn a further 35% interest in Rooderand for funding and completing a definitive feasibility study. Platinum Australia could earn a further 5% interest for arranging the financing for the development of the project.

However, Atla was now facing opposition, with Rustenburg Platinum Mines issuing an application seeking to interdict the Minister of Mineral Resources from accepting or granting further applications for prospecting and mining rights covering a portion of the Rooderand farm.

The litigation was in relation to an application for a new order prospecting right, which Rustenburg Platinum Mines made in 2005, covering a portion of the Rooderand farm, which was rejected by the Department of Mineral Resources.

A prospecting right was issued to Atla in November 2009.

Platinum Australia said that the Rustenburg Platinum Mine's application would be opposed, adding that the company was confident that it would be shown that the prospecting right issued to Atla was in accordance with due process, and that the award of the prospecting right would be upheld.

At the end of October this year, Platinum Australia said that the definitive feasibility study for its Rooderand project was delayed to the March quarter, owing to a delay in the updated resource estimate at its Rooderand operation as a result of increased turnaround times for assay results.
 

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