Platinum Australia has increased its stake in the Smokey Hills Platinum mine to 69.75 per cent.

The transaction represents an increase of 10.75 per cent from the 69.75 per cent it previously controlled.

Two transactions will see Platinum Australia acquire 6.75 per cent for Aus$5.5 million and a further four per cent in exchange for one million shares in its own company.

John Lewis, Managing Director, said that he was pleased to expand the firm's share in what he described as "one of the lowest cost producers" in the mining industry.

"With construction now well under way and commissioning due to commence in July we believe we will see a very rapid payback for our investment," he explained.

Operations at the mine are expected to open cut with a view to operating a shallow underground mine in the first year.

The plant is expected to produce about 95,000 oz of platinum group metals with much of this being delivered to Impala Refining Services.

Source:

Platinum Australia increase stake in Smokey Hills Platinum mine from 59% TO 69.75%, 29/05/08

http://www.gtp.com.au/platinumaus/inews_files/ASX0847JDL_290508.pdf