Platmin to sell $100 mln debenture to Temasek unit

Mon Mar 29, 2010 9:24am EDT
 

(Reuters) - Canada's Platmin Ltd PPN.TO agreed to sell a $100 million convertible debenture to a unit of Temasek Holdings TEM.UL, giving the Singapore sovereign wealth fund the right to nominate a board member.

Platmin also said it was looking to raise additional $250 million through an equity offering.

Platmin, an emerging platinum group metals (PGMs) producer, said it will use the funds mainly for working capital and to complete its Pilanesberg platinum mine project.

The non-interest bearing secured debenture will have a maturity date of December 31, 2010, and will be convertible at a price of C$1.25 ($1.215) per common share, the company said.

"Through our investment in Platmin, we will gain direct exposure to the fast-growing automotive sectors in China and India," said Nagi Hamiyeh, managing director of investment at Temasek.

Earlier this month, Temasek said it wants to increase its exposure to mining in Mongolia and is also looking for opportunities to invest in the mining sector in Africa.

Shares of Platmin closed at C$1.37 Friday on the Toronto Stock Exchange.

(Reporting by Ashutosh Joshi in Bangalore)