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Aquarius Platinum says all pre-conditions for its £96 million Ridge Mining bid have been satisfied.

Fully-listed Platinum, which produces platinum group metals (PGMs) in South Africa’s Bushveld, first announced its all-share bid for fellow Bushveld PGM counter Ridge in February. AIM-quoted Ridge accepted the bid, which was subject to certain pre-conditions about funding the PGM projects involved.

Since then, Aquarius has raised $260 million (£162.5 million) through shares and convertible bonds. Meanwhile, Ridge’s 50 per cent-owned Blue Ridge Platinum subsidiary has entered into agreements to raise and re-finance £40 million of secured funding to keep its Blue Ridge mine in operation and to borrow £16 million of bridge financing, which Aquarius will assume if the bid goes through.

Both companies say these funding measures satisfy the pre-conditions and the bid can proceed. Ridge chief executive officer Terence Wilkinson argues ‘the support of Aquarius has been invaluable in arranging the required finance to fund working capital at Blue Ridge’.

Aquarius, steered by chief executive officer Stuart Murray, says it has so far received irrevocable acceptances from Ridge directors and institutions together holding 32.7 per cent of its capital. With Aquarius shares at 281p (down 3.5p this morning), the offer, of one Aquarius share for every 2.75 Ridge shares, represents a small premium to Ridge’s present price of 97p.

That is 70 per cent up since Growth Company Investor advised holding on at 57p and four and a half times their 21.5p low last October, though less than half their original float price of 225p. Those showing a profit might be tempted to take it, but those preferring to dwell on possible further bid developments and/or on the long-term prospects of the Bushveld should still hold on.

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