Ridge clinches R1bn mine funding
Ridge exploring LionOre option
Ridge enlisting partner for $690m mine



Ridge may sell shares to Chinese firm
David McKay
Posted: Sun, 01 Oct 2006
[miningmx.com] -- RIDGE Mining, the London-listed platinum company, may sell about a fifth of its share capital to finance its portion of Blue Ridge, a platinum project in South Africas North West province. Blue Ridge is expected to produce 125,000 oz/year from 2008.


Ridge Mining requires about R120m to complete funding its 50% equity in Blue Ridge, estimated to cost R1bn to complete. Terence Wilkinson, Ridge Mining CEO, declined to comment when contacted on the weekend.

On August 30, Ridge Mining announced it had sold 50% of its Blue Ridge project to empowerment company, Imbani for about R300m. In addition, Ridge Mining secured the support of a banking consortium consisting of Investec and Standard Bank to debt finance half of the project. Ridge had already sunk about R200m in the project.

According to a market source, Ridge will sell about 16 million shares to Zijin Mining Company, to complete the financing of Blue Ridge. Zijn is a $5.2bn company that accounts for about 10% of Chinas gold output. It operates the large open pit mine Zijnshan, but is thought to be seeking exposure to platinum group metals as a means of diversification.

Ridge is also expected to confirm the issue of shares to Imbani in terms of which the empowerment company will gain access to the holding company as well as asset level investment.

Imbani has been a long-standing potential partner in the project but the going has been tough. It was originally intended to take a 70% stake in the Blue Ridge project but it's thought the improvement in the platinum price, and weakening of the rand, made a higher equity stake for Ridge more viable.

Ridge Mining has had a very frustrating past, with projected economic uncertainty, lack of funds and a strong rand exchange rate, said Mark Smith, an analyst at RBC Capital Markets in a note dated 13 March. However, Ridge has picked itself up and has come back fighting.

Shebas Ridge, another platinum prospect owned by Ridge Mining, is thought to be the company maker, however.
Free news alerts: click here to subscribeCurrently carrying an estimated capital cost of R4.5bn far in excess of Blue Ridge Shebas Ridge has projected production of 390,000 oz /year of PGMs as well as by-products copper (12,000 t/year) and nickel (23,900 t/year).

The project could also require the participation of major mining or industry participants. Anglo Platinum has a stake in the project, but Ridge Mining has the option to dilute it down to 12,5% an option that Wilkinson says remains attractive.

Its thought that Zijns investment in Blue Ridge might also be extended to Shebas Ridge.

yes the story was correct, but even so, sp has moved barely 10% on small volume and more importantly ........ "We anticipate being in a position to commence
planning construction following the completion of the bankable feasibility study
towards the end of 2007"....... still no hurry to dive in

Cynic, Maestro needs something to distract him from the car crash that has been LNG and any other of his online betting tips. :o)

I've been in Ridge for a number of months; unfortunately I'm down about 28% even after today's news, but see the long-term prospects as excellent. More incisive comment on the main thread.