Northam CEO Paul Dunne
JOHANNESBURG (miningweekly.com) – JSE-listed Northam Platinum on Friday said it had successfully raised term debt through the issue of R175-million of five-year senior unsecured fixed-rate domestic medium-term notes.
The proceeds were expected to further strengthen Northam’s balance sheet and bolster the funding for the company’s growth project pipeline aimed at strategically positioning the platinum miner to meet the demands of an expected stronger pricing environment by 2020.
The pipeline of projects targeted activities at the Booysendal operations and expanding its smelter at the Zondereinde platinum mine.
The new notes bear a fixed coupon of 13.5% a year, payable semi-yearly and would be redeemed on May 12, 2021.
“The notes match Northam’s project development requirements and a fixed rate allows for prudent forecasting of the debt cash flows over the term,” said CEO Paul Dunne.
The new medium-term notes followed on the R250-million subscription agreement with the Industrial Development Corporation in February.
The domestic medium-term notes could be issued at Northam’s election until September 30 and would have a three-year term, bearing a floating rate of 3.9% above the three-month Johannesburg Interbank Agreed Rate.
Earlier this week, the group had unlocked further funding through the sale of its 20.3% interest in diamond miner Trans Hex to Business Venture Investments No 1952 for R81.8-million.