Junior platinum-group metals (PGMs) and gold explorer Platfields CEO Bongani Mbindwane on Thursday said it still planned to make its debut on the JSE in the last quarter of this year, and that the company also wanted to list on the TSX at some point.
In mid-August the company announced that it was planning to list on the JSE in October and would raise R200-million to further explore and develop its two PGMs projects, as well as a gold project.
Mbindwane said on Thursday that it was hoping to list in October or November, but that it would definitely be before the end of the year.
He noted that the market conditions were now right for junior companies to enter, as it was easier to raise money when the market was retreating and more difficult when the prices were high.
This, despite other junior companies, such as Lesego Platinum, recently having had to postpone its listing plans indefinitely after precious metals prices had started falling.
Mbindwane said that the company's investment model of acquiring near-surface mining properties, that could be quickly and easily mined and where the risks were manageable, ensured that it could start mining in the next two to three years and placed it in a good position within the market.
He added that there was also a healthy demand for PGMs and gold and that there were excellent growth prospects for the company in terms of consolidations and acquisitions in its areas of operation, and that it had entered into discussions with other players in the market.
It was specifically looking at consolidation with other platinum juniors in the area surrounding its Berg PGMs project, situated on the eastern limb of the Bushveld Complex.
Platfields was planning a two-phased capital raising, through the listing of shares, in order to better manage the dilution of its shares. It wanted to raise R200-million in capital during the first phase and R250-million in the second phase.
In addition to these funds, the company would add R100-million of capital it had raised since 2001, to spend on its exploration and development programme.
It would spend a total of R324,9-million on exploration drilling at its three projects, with R283,7-million to be spent on a three-phase drilling programme at the Berg project.
The Berg project stretched over an area of about 6 000 ha comprising four contiguous properties, including the farm Draaikraal, for which Platfields was recently awarded the prospecting rights.
The company had applied for the prospecting rights of the Draaikraal property, as well as the contiguous Mapochsgronde property, earlier this year.
Mbindwane said that its application for acquiring the prospecting rights for the Mapochsgronde property had been denied, however, it was in discussion with the current owners, whose application had been approved, to acquire the property.
He expected that a deal could be concluded after its listing.
Meanwhile, the first phase of the drilling programme, which would be done over a 12-month period and would establish an inferred resource, had already started.
The company had budgeted R19,1-million for the first phase, which would comprise the drilling of 15 boreholes.
Further, Platfields would spend R24,1-million on a two-phase exploration programme at the Leeuwkop PGMs project, also on the eastern limb of the Bushveld Complex, while R17,1-million would be spent on a two-phase exploration programme at the Grootfonteinberg gold project, located within the Transvaal Drakensberg goldfield.
Meanwhile, the company wanted to increase its shareholding in the Leeuwkop project, in which it held a 32,5% interest, to a 100% shareholding.
Mbindwane explained that a number of small black economic-empowerment firms held the balance of the shareholding and that he was certain Platfields would be able to increase its stake.
Bongani Mbindwane
Chief Executive
E-mail: bongani@platfields.co.za
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