TIDMJLP
RNS Number : 3180N
Jubilee Platinum PLC
27 September 2012
AIM: JLP
JSE: JBL
Registration number: 4459850
ISIN GB0031852162 27 September 2012
Jubilee Platinum PLC
("Jubilee" or the "Company")
Jubilee Secures Access To Additional PGM-Bearing Surface
Material; Middelburg and Power Alt Update
Jubilee, the AIM and JSE quoted mine to metal specialist, is
pleased to announce significant advances in its mine to metals
strategy with the conclusion of a number of agreements and
memorandums of understanding ("MOU"s). These agreements will enable
the Company to access additional surface and near surface platinum
group metal ("PGM")-bearing resources and tailings; to increase its
interest in its subsidiary power generating company, and to secure
outright ownership of its Middelburg smelting group. These
agreements advance the Company's strategy to secure access to near
term cash-generative projects.
Highlights
-- The Company has entered into a binding and exclusive MOU to
acquire a 51% interest in a fully BEE empowered entity, which holds
the prospecting rights for PGMs on a portion of a farm located in
the western Bushveld of South Africa. The farm includes a
PGM-bearing chromite tailings dump estimated to contain at least
500 000 tonnes of material. The acquisition would be either in cash
ZAR3.5 million (GBP263,000) or through the issue of new ordinary
shares in Jubilee of equivalent cash value. The means of settlement
is at Jubilee's sole discretion;
-- The Company's subsidiary Braemore Platinum Smelters (Pty) Ltd
("Braemore") entered into an agreement, which provides Braemore an
exclusive option to purchase platinum-bearing surface assets
existing on various mining claims in Zimbabwe. The acquisition
would be for GBP1.0 million (ZAR13.3 million) in cash or through
the issue of new ordinary shares in Jubilee of equivalent cash
value. The means of settlement is at Jubilee's sole discretion;
-- Jubilee has increased its interest to 100% in its subsidiary
Jubilee Smelting and Refining (Pty) Ltd ("JSR"), the holding
company of its Middelburg smelting company RST Special Metals
(RST") via a claims settlement agreement with JSR's shareholders
under the terms of its Shareholders Agreement. The settlement
includes the payment of ZAR2.7 million (GBP204,000) in cash or
through the issue of new ordinary shares in Jubilee of equivalent
cash value. The means of settlement is at Jubilee's sole
discretion; and
-- The Company has entered into a binding MOU to acquire an
additional 19% interest in its 51%-owned power generating company
Power Alt (Pty) Ltd ("Power Alt") by way of cash R13.1 million
(GBP988,000) or issue of Jubilee ordinary shares of equivalent cash
value at Jubilee's election in three tranches, the issue of which
would be within 120 days of signing the MOU. The means of
settlement is at Jubilee's sole discretion.
Leon Coetzer, Chief Executive Officer of Jubilee said: "Jubilee
has successfully secured access to near-term cash generative
projects by leveraging its exclusive ConRoast process. This
positions Jubilee to establish itself as a significant platinum
producer in the near term. Jubilee has increased its holding in
both the power plant and the Middelburg smelter operations to
improve the Company's earnings potential."
Jubilee secures access to additional PGM-bearing surface
material
Jubilee successfully concluded agreements for new surface
PGM-bearing materials, adding to its existing Dilokong Chrome Mine
tailings resource in the eastern Bushveld.
Western Bushveld
Ashbrook (Pty) Ltd ("Ashbrook"), a fully accredited BEE company
holds a prospecting right for PGMs and nickel over a farm in the
western Bushveld. The farm includes a PGM-bearing chromite tailings
dump ("Dump"). The Dump is estimated to contain at least 500,000
tons of material with a PGM content of at least 1.6 grams per ton
("Minimum Size Requirements").
Another company currently operates a chrome mine and
beneficiation plant on the farm. The tailings from this operation
contain PGMs and are deposited on the Dump.
Ashbrook and Jubilee have agreed through an MOU to form an
exclusive joint venture to exploit and process the Dump and
additions arising from the mining activity on the farm.
Jubilee will acquire 51% of the shares in Ashbrook from the
vendors for ZAR 3.5 million (GBP263,000), settled either in cash or
through the issue of new ordinary shares in Jubilee at the
equivalent cash value. The means of settlement is at Jubilee's sole
discretion and on condition that the Dump meets the Minimum Size
Requirements.
The MOU is subject to Jubilee undertaking due diligence within
four weeks of execution of the MOU and to any regulatory approvals,
to the extent they are necessary.
Surface Material in Zimbabwe
Braemore entered into a memorandum of agreement ("MOA") with
BioMetallurgical Limited ("BioMet"), a company incorporated in
Zimbabwe, giving Braemore for the right to conduct due diligence on
and, if appropriate, the exclusive option to purchase certain
surface platinum-bearing assets existing on various mining claims
("Claims") owned by BioMet's subsidiaries in Zimbabwe.
The exclusive option to purchase the assets is for a period of
90 days from the execution of this MOA.
The assets include an estimated 800,000 tonnes of slag dump
containing an estimated 20,000 tonnes of matte. The matte is
composed mainly of base metals and PGMs containing, it is believed,
around 4% Nickel and 15 grams per ton Platinum. The assets also
include an estimated 6,300,000 tonnes of nickel tailings dump,
which are the residues from previous mineral processing and are
believed to contain base metals and PGMs.
The consideration for the acquisition of the assets is
GBP1,000,000 (ZAR13.3.million), subject to due diligence by
Jubilee, which may be settled either in cash or Jubilee ordinary
shares equivalent to the cash value at Jubilee's election.
This MOA is an initial understanding between the parties and
envisages a final binding agreement.
Jubilee increases position in its cash-generative
subsidiaries
Jubilee Smelting and Refining Pty (Ltd) ("JSR")
The Company entered into a settlement agreement with JSR
shareholders and claimholders whereby the parties agreed in full
and final settlement of all claims to transfer the remaining 30%
interest in JSR to Jubilee, in accordance with the JSR Shareholders
agreement.
This agreement includes settlement of claims to the value of ZAR
2,715,973 (GBP204,000) in cash or through the issue of new ordinary
shares in Jubilee at the equivalent cash value. The means of
settlement is at Jubilee's sole discretion. The agreement gives
Jubilee total ownership of JSR and is part of the restructuring of
JSR's balance sheet.
Power Alt Purchase
The Company entered into a binding MOU with ASTRA Group Holding
(Pty) Ltd ("ASTRA"), a shareholder in Power Alt (Pty) Ltd ("Power
Alt"), regarding the sale of shares in Power Alt. The Company
currently has a 51% interest in Power Alt.
Under the terms of this MOU the Company will acquire ASTRA's
shareholding in Power Alt amounting to 19% of the issued share
capital, valued at R13,139,000 (GBP988,000) ("Value") in cash or
through the issue to ASTRA, in three tranches, of new ordinary
shares in Jubilee of equivalent cash value. The means of settlement
is at Jubilee's sole discretion.
In the first tranche the Company will acquire shares from ASTRA,
amounting to 7.60% of the issued share capital of Power Alt, for a
consideration of ZAR 5,255,600 (GBP395,000) (40% of Value).
In the second tranche the Company will acquire shares from
ASTRA, amounting to 9.50% of the issued share capital of Power Alt,
for a consideration of ZAR 6,569,500 (GBP494,000) (50% of
Value).
In the final tranche the Company will acquire shares from ASTRA,
amounting to 1.90% of the issued share capital of Power Alt, for a
consideration of ZAR 1,313,900 (GBP99,000) (10% of Value).
Should Jubilee elect to settle the acquisition by way issue of
new ordinary shares in Jubilee the shares will be allotted and
issued at the 30 business days volume weighted average price on the
Johannesburg Stock Exchange Limited, preceding the two business
days before the respective settlement for issuance.
The effect of this agreement is to increase Jubilee's exposure
to the profitable sale of power by Power Alt, which increases the
Company's profitability for the coming financial year.
Power Alt, which was awarded the tender in August 2012
(announced 8 August 2012) to supply power to South Africa's
national power generating company is expected to commence sale of
electricity in October 2012, subject to National Energy Regulator
of South Africa's (NERSA) approval.
Andrew Sarosi, Technical Director of Jubilee, who holds a B.Sc.
Metallurgy and M.Sc. Engineering, University of Witwatersrand and
is a member of The Institute of Materials, Minerals and Mining, is
a 'qualified person' as defined under the AIM Rules for Companies
and a competent person under the reporting standards. The technical
parts of this announcement have been prepared under Andrew Sarosi's
supervision and he has approved the release of this
announcement.
Contacts
Jubilee Platinum plc
Colin Bird/Leon Coetzer
Tel +44 (0) 20 7584 2155 / Tel +27 (0) 11 465 1913
Andrew Sarosi
Tel +44 (0) 1752 221937
finnCap Ltd
Matthew Robinson/Ben Thompson - corporate finance
Joanna Weaving - corporate broking
Tel +44 (0) 20 7220 0500
Shore Capital Stockbrokers Limited (Joint Broker)
Jerry Keen/Edward Mansfield
Tel: +44 (0) 20 7 408 4090
Sasfin Capital
Leonard Eiser/Sharon Owens
Tel +27 (0) 11 809 7500
Bishopsgate Communications Ltd
Nick Rome/Anna Michniewicz/Ivana Petkova
Tel +44 (0) 20 7562 3350
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCGMGZLGNDGZZM
Jubilee Metals (LSE:JLP)
Historical Stock Chart
From May 2024 to Jun 2024
Jubilee Metals (LSE:JLP)
Historical Stock Chart
From Jun 2023 to Jun 2024