JOHANNESBURG (miningweekly.com) – Dual-listed Eastern Platinum (Eastplats) intends to raise $10.32-million in a private placement of about 18.43-million shares at $0.56 apiece.
The common shares will represent 19.9% of the issued and outstanding common shares of the company, and will be subject to a four-month hold period.
Closing is expected to occur on or about December 2.
Eastplats in June announced that it would sell its South African subsidiary Barplats Mines, which holds the flagship Crocodile River mine, to Chinese company Hebei Zhongheng Tianda Platinum (HZT) for $50-million, but would retain its eastern limb projects, including the Mareesburg, Spitzkop and Kennedy’s Vale projects.
The company was, at that time, facing a potential board overthrow, with dissident shareholders seeking the dismissal of the company’s board and management.
The dissident shareholders in July succeeded in ousting the former board, with Diana Hu appointed the new CEO. The company’s new management is reviewing the sale of Barplats to HZT.