Johannesburg - JSE-listed platinum miner Northam Platinum Limited on Friday announced that it had successfully raised term debt through an issue of R175-million five-year senior unsecured fixed-rate domestic medium-term notes.
In a statement, Northam said the notes bear a fixed coupon of 13.5 percent per annum, payable semi-annually, and would be redeemed on May 12, 2021.
The miner said the proceeds would further strengthen its balance sheet and be applied to the development of the company’s project pipeline.
Northam’s chief executive, Paul Dunne, said the notes matched Northam’s project development requirements and a fixed rate allowed for prudent forecasting of the debt cash flows over the term.
“We are pleased to have again received support from the market and believe that it reaffirms investor confidence in our growth strategy,” Dunne said.
Earlier this month, Northam disposed of its 20.3 percent stake in diamond producer Trans Hex Group for R81.8 million.
In 2015, Northam survived a tough year by securing its black economic empowerment status, raising R4.6 billion in fresh capital, completing the acquisition of Everest mine and continuing to ramp up Booysendal.
ANA