Dual-listed Eastern Platinum (Eastplats) on Friday announced a rights offering that provides shareholders an opportunity to directly fund the capital investment required to take advantage of platinum group metals (PGMs) growth projects.
Shareholders can acquire one right for each common share held. Each right will entitle the holder to subscribe for one common share at a subscription price of C$0.11 or R1.4564 a share.
Eastplats has 137 820 773 common shares issued and says if all rights are validly exercised, an additional 137 820 773 common shares will be issued.
Eastplats explains in a statement that it will use net proceeds of the rights offering, subject to the results of the amount raised, on capital projects expected to be completed during 2023.
If sufficient funds are raised, the money will be used on secondary projects, which are expected to begin in 2023 but which are not expected to be completed until the following year.
The offering will close on May 5.
Eastplats notes that it has sufficient working capital to continue with its current operations in 2023, subject to the Retreatment Project option and loan assessment occurring in 2023.