Eastern Platinum (Eastplats) has announced a rights offering to its shareholders to acquire common shares of the company at the close of business on December 18, on the basis of one right for each common share.
Each right will entitle the holder to subscribe for one common share of the company upon payment of the subscription price of R3.77 a share.
Shareholders who fully exercise their right will also be entitled to subscribe for additional common shares.
The company intends to use the net proceeds of the rights offering, subject to the results of the amount raised, on capital projects (which will be focused on platinum-group metals opportunities) expected to be completed during 2021 and, if sufficient funds are raised, on secondary projects, which are expected to begin in 2021 but which are not expected to be completed until the following year.
Eastplats forecasts it has sufficient working capital to continue with its current operations in 2021, subject to the retreatment project option and loan assessment occurring in 2022.