Impala Platinum Holdings Ltd. started a planned sale of shares on Tuesday to raise 4 billion rand ($295 million) to pay for new shafts.
The share sale that was first announced on Sept. 3 will begin “immediately,” the Johannesburg-based company said in a statement. The proceeds will go toward completing two shafts at Impala’s Rustenburg operation over the next three years, it said. The placing will be offered to qualifying investors and is underwritten by UBS Group AG.
“These new shafts will replace production from the older shafts as they are mined out and closed,” Impala said.
Impala is raising the money as margins for the world’s largest platinum producers are squeezed by a 47 percent decline in prices since 2011. Impala said last month it will close shafts and cut jobs to preserve cash and that it expects the metal’s price to remain “lower for longer.”