Pallinghurst creates new entity Sedibelo Platinum Mines in South Africa
Guernsey-based private equity company Pallinghurst Resources has completed the creation of a new company called Sedibelo Platinum Mines with the consolidation of Platinum Group Metals (PGM), Pallinghurst Co Investors and the Bakgatla Ba Kgafela Tribe in South Africa.
The consolidation in the north-west province of South Africa was a prerequisite for the country's Industrial Development Corporation (IDC) to invest ZAR3.24bn ($420m) for a 16.2% interest in Sedibelo Platinum Mines on 3 December 2012.
Through the consolidation, Pallinghurst expects to create an industry significant, low-cost and long-life PGM producer.
The consolidation allows the company to develop a contiguous ore body for the construction of a shallow mining complex.
Consolidation and subsequent IDC investment provides the new entity with a strong balance sheet.
Pallinghurst chairman Brian Gilbertson stated, "The long-term commitment of three sovereign investors on the shareholder register will support the unlocking of the full potential of the company with associated job creation and community benefits."
Pallinghurst chief executive Arne Frandsen further noted that the efforts made in the past six years has resulted in the creation of Sedibelo Platinum Mines.
"Within the past month, the Pallinghurst management team has announced the first delivery of manganese ore from the Tshipi mine, the proposed merger of Gemfields and Fabergé and now today the emergence of Sedibelo Platinum Mines," Frandsen said.