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Sibanye to raise $2bn

Companies

Johannesburg - Sibanye Gold plans to raise $1 billion from shareholders and a further $1 billion in debt, most likely bonds, to pay for the acquisition of Colorado-based Stillwater Mining Company.

The funds will be raised by the middle of this year and will help repay a $2.65 billion bridge loan from a group of banks, Westonaria, South Africa-based Sibanye said in a statement Tuesday.

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A gold miner working underground at a gold mine in Boksburg. Picture: Lori Waselchuk/AP

The remainder of the loan will be repaid through a combination of sources such as commodity-streaming deals, the company said.

When Sibanye announced the $2.2 billion purchase in December, it said it planned to raise $750 million to $1 billion from shareholders before saying in February it may increase this amount to $1.3 billion.

Read also: Sibanye to buy Stillwater for R30bn

The company received approval for the purchase of the US’s only platinum and palladium miner on April 14. Sibanye shareholders vote on the deal April 25.

For more on this topic, pick up a copy of Business Report tomorrow. 

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