Precious metals mining company Sibanye-Stillwater last week announced the impending launch of a $450-million convertible bond offering linked to the refinancing of the outstanding portion of the bridge loan the company raised to buy Stillwater Mining in the US.
The senior unsecured guaranteed convertible bonds, which fall due in 2023, were to be issued by the company on September 26, underpinned by the Stillwater and Kroondal operations.
The convertible bonds are expected to pay a coupon of between 1.625% and 2.375% a year half yearly in arrears in equal instalments.
The initial conversion price is expected to be set within a premium range of 30% to 35% above the volume weighted average price of Sibanye-Stillwater’s shares on the JSE.
The bonds will be convertible into new and existing shares or a combination of both.
The South African domiciled precious metals mining group, headed by Neal Froneman, last week announced that it had successfully extended the platinum group metals (PGM) mineralisation at the Stillwater mine’s Blitz project, in Montana, a brownfield extension of the existing Stillwater mine.
The company revealed that mineralised ore at the Blitz project had been intersected at a grade of 79 g/t, a significantly richer grade than the compliant proven and probable reserve grades of 19.55 g/t.
The Blitz project is expected to lift output from the US PGM operations by about 300 000 oz/y of palladium and platinum, once operating at a steady state from early 2022.