South African platinum mine owner Barplats has secured a R172.8 million deal to raise funding for its Crocodile River mine.

The junior mining group made the deal with South Africa's former mining and justice minister, Penuell Maduna, whereby his group will acquire 26 per cent of Barplats.

The move means the company will fully meet equity requirements in the mining charter and will be able to fast-track its mining businesses.

Described as an empowerment deal, Barplats sold 78.2 million new shares to the Gubevu consortium, priced at R2.21 per share, less than a third of the R7 price that the shares were trading on the Johannesburg Stock Exchange.

Funding will go towards Crocodile River's Maroelabult section, extending mining at the Zandfontein section and conducting evaluation of the Kennedy Vale prospect.

In addition, Barplats CEO, David Salter, is aiming to bring Crocodile River's annual production rate to 200,000 to 220,000 ounces of combined pgms.

Gubevu is currently in the process of borrowing funds for the deal, which is occurring at a time when the African National Congress (ANC) party has called for mines to transfer shares back to black South Africans.

"This transaction is particularly gratifying for me in that it fulfils the spirit and intent of the mining charter. The Gubevu consortium looks forward to playing a constructive and value-adding role in the future growth and development of Barplats," Mr Maduna said.