Platinum producer Sylvania Resources has raised 10 million pounds (R122 million) in a share issue to pay for ongoing projects and to buy a tailings dump from Lonmin.
The firm, listed in London and Sydney, placed 25 million shares at 40 pence per share, it said in a statement on Monday.
Sylvania shares in London closed at 39.5 pence on Friday after a rollercoaster year where they tripled to a peak of 82 pence in June then fell back towards the 29-pence level at which they started the year.
The share issue will represent 10.3 percent of the enlarged share capital of Sylvania, whose operations are focused on shallow mining and treating waste tailings in South Africa.
Some R45 million of the proceeds will be used to buy rights to exploit the Mooinooi tailings dumps from Lonmin, the world's third biggest platinum producer.
On December 3, Sylvania said it had commissioned the tailings section of its Mooinooi recovery plant, the firm's fourth plant.
"This equity raising further strengthens Sylvania's balance sheet and will provide a strong platform for the company to pursue its growth initiatives at Grass Valley and Tweefontein," Sylvania's Managing Director Terry McConnachie said.
In the quarter to end September, the firm produced 5 558 ounces of platinum group metals and had A$19.7 million (R135 million) in cash. - Reuters