Northam raises R600m in equity through claw-back deal
JOHANNESBURG (miningweekly.com) – Northam Platinum on Friday confirmed that it had raised R600-million in equity capital through the implementation of a renounceable claw-back rights offer, which has been fully subscribed for by Coronation Asset Management.
The offer would comprise an offer to shareholders of 15-million new Northam ordinary shares at a subscription price of R40 per claw-back share, in the ratio of 3.92 claw-back shares for every 100 ordinary Northam shares held on November 15.
The claw-back shares would be issued on December 9.
This followed an announcement by the platinum explorer in September that it would implement a restructured R1-billion funding programme to reinforce the group’s medium-term financial position.
The programme would comprise the R600-million claw-back equity capital raising and a new R400-million medium-term revolving credit facility, which would expire on March 31, 2015.
Besides depressed platinum-group metal basket prices, volatile exchange rates, rising costs and a complex industrial relations environment, Northam had been weighed down by excess capital costs at both its Zondereinde and Booysendal mines.
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