South Africa’s Sibanye Gold will tap shareholders for funds at a discount of 60 percent in a $1 billion rights issue, the mining company said on Thursday.
Sibanye will use the rights issue to repay a portion of a $2.65 billion loan facility it used to acquire U.S. platinum producer Stillwater.
The company will offer new shares at 11.28 rand each, a discount of 60 percent to its closing price on May 17, it said in a statement.
Shares in Sibanye fell more than 6 percent after the announcement, but narrowed losses to 2.3 percent at 27.83 rand by 1003 GMT, compared with a 0.5 percent gain in the Johannesburg Securities Exchange’s gold mining index.
Sibanye, a portfolio of South African gold mines spun out of Gold Fields in 2013, has bought several platinum mines in its home market. Stillwater is its first foreign venture.
(Reporting by TJ Strydom; editing by Jason Neely)
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