Perth-based Mineral Securities Ltd has entered into agreements to acquire a further 680,336 shares in Platmin Ltd from existing Platmin shareholders for $US13.6 million ($A18.4 million).
Perth-based Mineral Securities Ltd has entered into agreements to acquire a further 680,336 shares in Platmin Ltd for $US13.6 million ($A18.4 million), which will increase its undiluted interest in Platmin Ltd to approximately 17 per cent.
This would see Mineral Securities total shares and options in Platmin increase to approximately1.5 million.
It plans to fund the purchase through a A$27 million placement pitched at $1.15 per share.
The edited ASX announcement is below:
Mineral Securities Limited ("Minsec" or "the Company") is very pleased to announce that it has
entered into agreements to increase its interest in Platmin Limited ("Platmin") by 680,336 shares to
1,498,114 shares and options. In order to fund the Platmin acquisition, the Company has received
strong expressions of interest to raise A$27 million through the issue of 23.5 million Minsec shares
at A$1.15 per share.
Minsec is delighted to increase its involvement with Platmin, a company which Minsec believes
has considerable prospects to become a substantial platinum producer. Platmin currently has
resources of 21.7 million platinum group metal ("PGM") ounces1, and is actively pursing a
northern hemisphere listing.
Increased Investment in Platmin
Minsec has entered into share purchase agreements to acquire a further 680,336 of Platmin shares
from existing Platmin shareholders ("Additional Acquisition") for a cost of US$13.6 million. In
addition, the Company has followed its 61,778 rights pursuant to the one for nine rights issue
currently being undertaken by Platmin at US$20 per share.
Upon completion of the acquisitions, Minsec's undiluted interest in Platmin will increase to
approximately 17%.
Excluded Placement of A$27 Million
Minsec is pleased to report that it has received strong expressions of interest from Australian,
Asian and European Institutions to raise A$27 million through issue of 23.5 million Minsec shares
at A$1.15 per share. The excluded placement at A$1.15 per share, which has been arranged by
Haywood Securities (UK) plc, will be completed in three tranches:
- 12 million shares under the placing capacity recently approved by Minsec shareholders;
- 6.5 million shares under the Company's existing placing capacity; and
- 5 million shares subject to shareholder approval anticipated to be obtained in April 2006.
Haywoods are entitled to be issued with 925,000 unlisted Minsec options exercisable at A$1.30 on
or before 30 September 2007 as part consideration for arranging the Minsec placement ("Haywood
Options"). The issue of the Haywood Options is subject to Minsec shareholder approval.
The funds raised pursuant to this share issue will be used to settle the additional Platmin
acquisition, debt reduction, capital raising costs, general corporate expenses and investment
opportunities identified in the ordinary course of the Company's investment activities.
Shareholders Pool Agreement
Minsec has entered into a Shareholders Pool Agreement ("Pool Agreement") with CDC Group plc
("CDC"). Pursuant to the Pool Agreement, Minsec and CDC have agreed to pursue a listing of
Platmin on a recognised exchange. In support of the listing objective, the parties have agreed not
to dispose of their shares subject to certain conditions and hurdles. In addition, CDC has granted
Minsec a pro rata 'tag along' right should CDC dispose of any of their shares in Platmin and
Minsec has granted CDC a 'drag along' right over all of its shares should CDC dispose of all of
their shares.
The Pool Agreement terminates where Platmin completes a listing on an international exchange,
either party's shareholding falls below 10%, or 31 December 2006.
Following the acquisition of the Platmin shares announced by Minsec today, CDC and Minsec will
hold an estimated 55% interest in Platmin on a undiluted basis.
Macquarie Bank Debt Facility
Macquarie has agreed to extend their fully drawn loan facility of $3 million until 28 April 2006.
The extension of the facility has enabled the Company to follow its rights pursuant to the current
Platmin rights issue. The facility is unsecured, however, it is subject to a negative pledge
arrangement. The facility attracts an interest rate of 10% per annum and originally expired on the
31 January 2006 .It is anticipated that the loan will be repaid from the proceeds of the current
capital raising.
Should you have any further queries please do not hesitate to contact Mr Mark Bolton or myself on
(08) 9221 7466.
Yours faithfully
KEITH LIDDELL
Executive Chairman
