| Tue 4 Aug 2009, 8:01 | | PLN - Platmin Limited - Platmin secures ZAR 400 million revolving commodity |
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PLN
PLN
PLN - Platmin Limited - Platmin secures ZAR 400 million revolving commodity
finance facility
Platmin Limited
Incorporated in the accordance with the laws of Canada
Registration number: 610178-0
Share code on TSX: PPN
Share code on AIM: PPN
Share code on JSE: PLN
ISIN: CA72765Y1097
Platmin secures ZAR 400 million revolving commodity finance facility
NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES NEWSWIRE
SERVICES
August 03, 2009 TORONTO: Platmin Limited ("Platmin" or "the Company"; TSX/AIM:
PPN ; JSE: PLN) is pleased to announce that it has entered into a credit
approved term sheet with Investec Bank Limited (South Africa) ("Investec") to
provide a twelve month renewable revolving commodity finance facility of up to
ZAR400 million (USD 51.4 million at an exchange rate of ZAR7.78: USD1.00) for
loan repayment and working capital purposes ("the Facility`).
In terms of the Facility, Investec will finance up to 88% of Pilanesberg
Platinum Mines (Proprietary) Limited`s ("Pilanesberg") platinum, palladium,
gold, copper and nickel deliveries to Northam Platinum Limited ("Northam") in
accordance with the sale and treatment of concentrate agreement ("Concentrate
Agreement") concluded, between Pilanesberg and Northam. The Facility would
result in Pilanesberg receiving the precious and base metal prices prevailing
at the end of the month that the concentrate is delivered rather than when
payment is received in terms of the Concentrate Agreement, typically three to
four months later. The Facility will carry an interest rate of JIBAR
(approximately 7.68%) plus a margin of 3.00%.
The Facility is scheduled for closure on or before 31 August 2009, at which
time the outstanding balance on the current bridge loan facility with The
Standard Bank of South Africa Limited ("Standard Bank") of ZAR403 million
(approximately USD51.8 million at an exchange rate of ZAR7.78: USD1.00),
including accrued interest, will be repaid in full from the cash collateral of
the equivalent amount held on deposit with Standard Bank as security against
the outstanding loan balance.
Platmin Executive Chairman, Keith Liddell, said today, "The Investec facility
takes cognisance of Platmin`s transition to a fully fledged PGM producer and
provides the company with cash on delivery of concentrate to Northam, thereby
improving the cash flow profile of the Company and minimising working capital
costs and risks."
Sponsor: Investec Bank Limited
Date: 3 August 2009
About Platmin
Platmin is a mineral exploration, development and operating company engaged in
the exploration for, and development of, Platinum Group Element ("PGE")
deposits in South Africa. The Company has developed the Pilanesberg Project
into the Pilanesberg Platinum Mine and is exploring for PGE`s on its other
three key projects: Mphahlele, Grootboom and Loskop. Platmin`s goal is to
become a significant producer of PGEs through the development and operation of
several mines on its key projects. The Pilanesberg Platinum Mine is presently
in the `ramp up` phase and is expected to meet the design production rates
during 2009. The despatch of PGM concentrates for processing commenced in
April 2009. All of Platmin`s projects are located in the Bushveld Complex of
South Africa, which is estimated to contain approximately 90% of global
platinum mineral resources.
About Investec
Investec is an international specialist banking group with a dual listing on
the London Stock Exchange plc and securities exchange of the JSE Limited.
Investec provides a diverse range of financial products and services to a
niche client base in three principal markets, the United Kingdom, South Africa
and Australia as well as certain other countries, with a focus on delivering
distinctive profitable solutions for its clients.
For further information
Keith Liddell, Executive Chairman
+27 12 661 4280
Wayne Koonin, Chief Financial Officer
+27 12 661 4280
Grant Thornton UK LLP (Nominated Adviser)
Fiona Owen
+44 207 383 5100
Russell & Associates
Marion Brower
+27 11 880 3924
Date: 04/08/2009 08:01:02 Produced by the JSE SENS Department.
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