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Sibanye to raise $2bn in equity, debt for Stillwater deal

Johannesburg - Sibanye Gold [JSE:SGL] plans to raise $1bn from shareholders and a further $1bn in debt, most likely bonds, to pay for the acquisition of Colorado-based Stillwater Mining.

The funds will be raised by the middle of this year and will help repay a $2.65bn bridge loan from a group of banks, Westonaria, South Africa-based Sibanye said in a statement on Tuesday.

The remainder of the loan will be repaid through a combination of sources such as commodity-streaming deals, the company said.

READ: Sibanye gets nod to buy US mine, despite Trump's tough talk

When Sibanye announced the $2.2bn purchase in December, it said it planned to raise $750m to $1bn from shareholders before saying in February it may increase this amount to $1.3bn.

The company received approval for the purchase of the US’s only platinum and palladium miner on April 14. Sibanye shareholders vote on the deal April 25.

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