File photo: African News Agency (ANA)

JOHANNESBURG - Sibanye-Stillwater said on Wednesday that it had raised R1.7 billion, or U.S.$120 million, following the successful completion of the placing of more than 108 million new ordinary no par value shares which was announced on Tuesday.  

Sibanye placed the shares in the authorized share capital with existing and new institutional investors at a price of R15.50 per share. J.P. Morgan Securities plc was the sole bookrunner in connection with the placing. 

The gold and platinum miner said the placing of shares represented approximately five percent of the company's issued ordinary share capital prior to the placing. 

Pursuant to the terms of the placing agreement, Sibanye said it has agreed, subject to certain exclusions, to a lock-up arrangement for a period of 120 days from 9 April 2019. 

Neal Froneman, Sibanye chief executive, said it was pleasing to note the significant oversubscription of the transaction which is testament to the strong market support for Sibanye. 

"While we remain confident that the current operating and economic conditions will support our deleveraging plans during the course of the year, the enhanced balance sheet flexibility provided by this transaction, will ensure that the company is appropriately positioned and sufficiently robust to endure any exogenous socio-economic challenges," Froneman said.

- African News Agency (ANA)