Eastern Platinum Ltd. (TSX:ELR) announced Monday plans to raise $300 million to fund the first phase of a new South African platinum mining project.
The company’s operations are situated on the western and eastern limbs of the Bushveld Complex in South Africa, a region supporting over 70% of the world’s platinum supply.
Phase 1 of the project involves construction of an open-pit mine near Mareesburg with an aim to increase production to 325,000 ounces per year.
The company is currently producing platinum group metals from its Crocodile River mine, also in South Africa.
In the third quarter of 2010, the company reported a net profit of approximately $4 million, compared with approximately $1.8 million in the third quarter of 2009. As of September 30, 2010, the company had a cash position of $20 million.
As of press time, Eastern Platinum’s shares were down $0.05 to $1.75.