JOHANNESBURG (miningweekly.com) – JSE-listed Sable Platinum has accepted a nominal R151 payout to exit one exploration project and will not receive the expected funding from a black economic-empowerment (BEE) partner on another, separate exploration endeavour.

Headed by CEO James Allan, Sable is engaging in internal restructuring to reflect the company’s spread beyond platinum into vanadium and iron-ore and steel at Selebi Phikwe, in Botswana, which will result in a company name change to Sable Metals and Minerals, as well as a move from the platinum and precious metals sector to the general mining sector.

The company is taking steps to raise additional capital to continue its exploration programme and to cover all general and administration costs.

It said last year that its cash on hand of R1 680 586 would take it only into this month.

It announced financial losses of R79-million and said it was burning cash at a rate of R550 000 a month.

Its Abrina-project BEE partner has elected not to contribute proportional funding and will instead take up a reduced shareholding of 16% instead of the originally intended 40.7%.

As a consequence, Sable’s interest in its Fast Pace subsidiary has increased from 59.3% to 74% and 10% of these shares are being held in escrow until another BEE partner is found.

Sable is also pulling out of the platinum group metals segment of its project with Coveway, which it regards as non-viable and potentially litigious, and will receive a nominal R151 for its Coveway shares and loan account, which are being taken up by the project's BEE partners, Mineral Capital Assets and Platinum Mile.

The company has been using its own capital to fund exploration and Allan has personally granted the company a R1-million loan to contribute to operational expenses.

He has not drawn a salary from the company since February and executive director René Hochreiter has received only half of his salary since December 2012.

David Levithan, another executive director, has sacrificed 44% of his retainer since December 2012 and financial director Marietjie van Tonder has received only 80% of her salary since December 2012.

Several other staff members have also sacrificed 20% of their salaries since February, forfeiting R2.8-million.

The company, which is negotiating a further private placement of shares, has the go-ahead to place 15% of its issued share capital at a discount of not more than 10%.

Sable’s application for a prospecting right for vanadium, iron-ore and rutile has been granted at Doornpoort, in the Cullinan district and at Leeuwkopje, in the Thabazimbi district.

A technical due diligence study on the Selebi Phikwe steel project has been completed and the legal due diligence should be completed by year-end.