Aquarius Platinum has revealed that it will issue over 46 million new shares to increase capital as it battles delays in the commissioning of the concentrator at the Blue Ridge project.

Ridge Mining announced recently that it would unwind the platinum, palladium and rhodium hedges owned by its 50 per cent-owned Blue Ridge subsidiary in order to raise around R541 million ($56.6 million).

The company is currently ramping up production at the mine, which is expected to be 75,000 oz 4E (platinum, palladium, rhodium, gold) in concentrate this year and 150,000 oz 4E per year by 2011.

However, a further cash injection is required and Aquarius looks set to step in by providing a R150 million ($15.7 million) bridge fund as it endeavours to commence its proposed takeover of Ridge Mining.

A statement from Ridge, quoted by Mineweb, read: "The delay in commissioning the concentrator plant at the Blue Ridge mine as previously reported has given rise to a requirement for further working capital.

"This situation has been compounded by the project lenders withholding drawdown of the remaining facilities until Ridge and its partner, Imbani Platinum, contribute additional funding."

Aquarius has been conducting some necessary debt refinancing of late, created by the temporary closure of its Everest mine and ongoing problems with its various interests in Zimbabwe.

However, the latest official figures show that production is up significantly at Marikana and Kroondal, while the company now believes that subsidence at Everest can be resolved and does not threaten its long-term existence.

Aquarius is set to issue one of its shares for every 2.75 in Ridge, thus valuing the company at $102 million, in comparison to its current market value of $86 million.

Source:

Aquarius Platinum shows mettle (26/03/09)
http://www.mineweb.net/mineweb/view/mineweb/en/page67?oid=80881&sn=Detail