Shallow Reefs Gold eyes USD 300m pre-IPO equity raise for planned platinum buy

20 January 2021 - 04:48 am UTC

Shallow Reefs Gold, a South African precious metals company, is looking at an equity raise of around USD 300m via a private placement ahead of its planned IPO to help finance an acquisition of a South African platinum asset, said CEO Mark Gilbert.


The company is in advanced talks to acquire a platinum operation from a platinum mining major, said the CEO, declining to name the target.    


Shallow Reefs is actively looking at a listing in Toronto or London which could take place in May or June this year, Gilbert said. An international advisory company has already been appointed to manage the listing, said the CEO, who previously worked as the South African country head of Macquarie Bank.  


As reported last year by this news service, Shallow Reefs Gold had planned to list on an international exchange in the third quarter of 2021.  


While Shallow Reefs is focused on the acquisition of the platinum asset, it still intends to acquire several shallow gold projects in the country, the CEO said. As previously reported, the company is in the process of acquiring five gold deposits in South Africa which will cost around USD 80m.    


In addition to the equity raise, the company also intends to raise around USD 180m through debt funding, said the CEO.    


Shallow Reefs will focus on shallow precious metals projects with a depth of less than 1,200 below surface, as reported.    


The company, which is owned by members of management, will have an experienced management team including Susan Shabangu, as reported. Shabangu was previously Deputy Minister of Minerals and Energy in South Africa.