Pallinghurst Raises R800m to Progress Operations

11 August 2009 (Last Updated August 11th, 2009 18:30)

Natural resource investment firm Pallinghurst Resources has secured R800m through a rights offer to progress work at its four operations, including consolidating the area around the Pilanesberg platinum mine in South Afrcia. The company will offer 228 million new shares at R3.50 apiec

Natural resource investment firm Pallinghurst Resources has secured R800m through a rights offer to progress work at its four operations, including consolidating the area around the Pilanesberg platinum mine in South Afrcia.

The company will offer 228 million new shares at R3.50 apiece, representing a 12% discount to the 30-day volume weighted average price, and secured commitments from a number of shareholders and South African investment firms.

The capital would fully fund Pallinghurst’s three mining projects, so that all would be at the point of generating positive cash flows and would not need further funds, the company said.

Pallinghurst is also involved in luxury jewellery marketing through the Fabergé brand but this is expected to need further funding, Pallinghurst said.

Three of the company’s investment platforms are now approaching operating status and some additional funding is required to realise their full potential, Pallinghurst chairman Brian Gilbertson said.

“At Platmin the further consolidation of the Pilanesberg region is at the forefront of our minds,” Gilbertson said.