Northam Platinum to Raise $103 Million to Recoup Losses

Bloomberg reported that Northam Platinum Ltd. plans to raise 1 billion rand ($103 million) by selling shares and bank loans. Among other things, the company plans to use the funds to offset losses due to strike action and repair equipment.

As quoted in the market news:

Northam will raise 600 million rand through a so-called claw-back offer, fully subscribed by Coronation Asset Management (Pty) Ltd., in which 15 million shares will be sold at 40 rand each, the Johannesburg-based company said today in a statement. Banks will make 400 million rand available from a new revolving credit facility that ends on March 31, 2015.

‘Challenging economic and operational conditions have beset the South African mining industry for an extended period of time, with depressed platinum group metal basket prices, volatile exchange rates, rising costs and a complex industrial relations environment,’ the company said in the statement.

Click here to read the full Bloomberg report.