pallinghurst raises $98.5m

http://www.mineweb.com/mineweb/view/mineweb/en/page66?oid=87393&sn=Detail

Pallinghurst raises $98.5m to further four point mining and gem sales growth plan

Rights issue only goes forward in September but already there are irrevocable commitments for the full amount.

Author: Geoff Candy
Posted: Tuesday , 11 Aug 2009
JOHANNESBURG -
Mining investment company, Pallinghurst, announced Tuesday a fully underwritten rights issue worth R800m (US$98.5m).
Designed to bulk up the group's capital structure, Pallinghurst Chairman, Brian Gilbertson, said in an announcement to the Johannesburg Stock Exchange, "Three of our four investment platforms are now approaching operating status and some additional funding is required to realise the full potential of all four.
"This capital raising enables Pallinghurst to participate, along with our strategic equity partners, in our pro rata funding entitlements."
Under the issue, existing shareholders were offered 228,571,376 shares in a ratio of 92.452 rights for every 100 shares held, at a price of R3.50 ($0.43) per share - a 12% discount to the 30 day volume weighted average price.
According to the announcement The rights offer will first commence in early September, but the group already has "pre-placed and received irrevocable underwriting commitments for all shares available, for a total amount of R800 million."
Existing shareholders have committed to R447 million worth of the new rights, while Oasis Asset Management Limited, Oasis Crescent Capital (Proprietary) Limited and Trinity Asset Management (Proprietary) Limited have irrevocably agreed to underwrite the remaining R353 million.
Under the terms of the rights offer, all existing shareholders who have not participated in the pre-placement will be entitled to take-up, dispose, or renounce all or part of their rights. Only once this has happened will the new underwriters be allocated those shares that were unexercised.
The announcement comes in the wake of continuing jitters in international markets and CEO Arne Frandsen commented on this saying, "Conditions in the international capital markets remain volatile, and so we are delighted to have raised the full amount sought, even before the actual launch of the rights offer, and hence securing absolute funding certainty."
The money will be allocated to the group's four projects including platinum group metal projects in South Africa's Bushveld igneous complex, a steel feed project through two very different vehicles, the Tshipi Manganese Mining (Proprietary) Limited. and Jupiter Mines Limited (ASX listed), for the supply of mainly manganese and also iron ore.
The other allocations include investments in AIM-listed Gemfields as an entry into the coloured gemstone market and a strategic holding in the Fabergé brand which is being used to market a high-end jewellery collection.