JOHANNESBURG (miningweekly.com) – JSE-listed Northam Platinum's shares rose by 7.66% on Friday afternoon after it announced that it has entered into a R250-million subscription agreement with the Industrial Development Corporation (IDC), stipulating that the latter would subscribe to new domestic medium-term notes.
The proceeds, which would further strengthen Northam’s balance sheet, would be applied to the development of the local platinum-group metals miner’s Booysendal expansion projects, in the Bushveld Complex.
“We are pleased to have the IDC as a funding partner. The confidence shown is appreciated in light of the current adverse market conditions. This is a significant and important source of funding for Northam,” said CEO Paul Dunne.
Completion of the Booysendal project would result in a significant expansion of Northam’s operating capacity, as well as the creation of new employment opportunities.
Pursuant to the agreement, the 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.
Northam's shares on the JSE climbed from R36.03 apiece at Thursday's close to R38.79 apiece on Friday afternoon.