TIDMJLP
RNS Number : 4386V
Jubilee Platinum PLC
30 January 2017
Registration number (4459850)
AltX share code: JBL
AIM share code: JLP
ISIN: GB0031852162
30 January 2017
Jubilee Platinum PLC
("Jubilee" or "Company")
COMMISSIONING OF THE HERNIC TAILINGS PROJECT UPDATE
Exercise of warrants
Highlights
-- Commissioning of the Chromite Recovery Plant progressing to
schedule with first delivery of chromite concentrate product
targeted within the next two weeks.
-- Tie-in of the Chromite Recovery Plant into the Hernic
operational stream targeted over next 10 days.
-- The commissioning of the PGM Recovery Plant is the natural
succession of the Chromite Recovery Plant with integration of the
two recovery plants targeted for February 2017. Tailings of the
Chromite Recovery Plant forms the feed to the Platinum Group Metals
("PGMs") Recovery Plant
-- At conclusion of commissioning the recovery plants will
consist of 71 unit processes operated through 108 control loops
supporting material transfer systems totalling 7.100
kilometres.
Mine-to-Metals specialist Jubilee Platinum plc (AIM: JLP, AltX:
JBL) is pleased to announce, on behalf of its subsidiary Jubilee
Processing Proprietary Limited, a progress update on the
commissioning of its Chromite and PGMs Recovery Plants ("the
Project") at Hernic Ferrochrome Proprietary Limited ("Hernic") for
the recovery of chromite and PGMs from the Hernic tailings ("Hernic
Tailings Project").
At full production the Project will be the largest PGM
beneficiation plant of surface chrome tailings in South Africa
targeting the processing of 55 000 tons per month of chrome and PGM
rich material. The Company has followed a very stringent systematic
approach to the commissioning of this large integrated Project to
both minimize operational interruptions to the existing Hernic
operation as well as ensuring a controlled start-up to minimise the
time required to reach stable operation.
The commissioning activities include:
-- Structural, Mechanical, Electrical, C&I, Piping and
Equipment testing to ensure the integrity of installation which
relate to construction deliverables
-- Pre-operational functional testing and operating of the
equipment, under no load, for short periods of time, focussing on
an isolated piece of equipment within a larger process unit.
-- Integrated functional testing of process units in closed loop
using process water to complete commissioning of mechanical and
process control functionality of the integrated metallurgical
process unit.
-- Final functional testing of fully integrated metallurgical
unit processes using process water prior to feeding chromite and
PGM material.
The final step of integrating the Chromite Recovery Plant into
Hernic's current operations to receive Hernic feed material and
ramping up of production, is targeted for completion within the
next two weeks
The tailings from the Chromite Recovery Plant forms the feed to
the PGM Recovery plant. The integration of the two circuits will
commence during February 2017. The commissioning of the PGM
Recovery Plant is the natural succession of the Chromite Recovery
Plant with operational testing and commissioning of the unit
processes of the PGM Recovery Plant targeted for February 2017.
Project Capital expenditure to commencement of commission totals
GBP10 million (ZAR 167.1 million) or 85% of the projected total
capital spent for the Project which is line with the targeted
milestones of the project.
Leon Coetzer, Chief Executive commented:
"We are excited with the progress as we complete the testing and
commissioning of our Hernic project. The complexity of bringing
such a large project into operation has been well managed through a
disciplined commissioning program and the support of our contracted
engineering and project management partners. I invite our
shareholders to view the latest update Project pictures and short
videos capturing the progress on the commissioning activities on
the Jubilee website. The picture gallery depicts the transformation
of the project area during the project construction phase and the
commissioning activities. It also captures the magnitude of the
Project as we transform Jubilee into a platinum and chromite
producer."
Jubilee also announces that it has received notification from a
warrant holder to exercise 10,550,581 existing warrants in the
issued share capital of Jubilee ("Warrant Shares") at a price of
3.23p (ZAR54.17c) per Warrant Share. The exercise of Warrant Shares
amounts, in aggregate, to a cash value of GBP 340,784 (ZAR 5.7
million).
The Warrant Shares are expected to be admitted to trading on AIM
and listed on the AltX of the JSE Limited on or about 3 February
2017 and will rank pari passu with the ordinary shares of the
Company in issue.
Total voting rights
The Company's total issued capital, after the issue of the
Warrant Shares, will be 1,033,285,942 ordinary shares. As the
Company does not hold any shares in Treasury, this figure may be
used by shareholders in the Company as the denominator for the
calculations by which they will determine if they are required to
notify their interest in, or a change to their interest in, the
share capital of the Company following Admission.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
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
JSE Sponsor
Sasfin Capital, a division of Sasfin Bank Limited
Sharon Owens
Tel +27 (0)11 809 7500
Nominated Adviser
SPARK Advisory Partners Limited
Sean Wyndham-Quin/Mark Brady
Tel: +44 (0)203 368 3555
Broker
Beaufort Securities Limited
Jon Belliss
Tel: +44 (0) 20 7382 8300
The Hernic Project
Hernic Ferrochrome Proprietary Limited ("Hernic") is the world's
4th largest integrated ferrochrome producer with an estimated 3
million tons of platinum containing material at surface while
Hernic continues to add further material to the surface stock.
The Company was selected as the exclusive party to beneficiate
the chromite and PGMs contained in the Hernic Surface Material
("the Project") and address the project execution methodology as
well as the operational and financial performance targets. The
Project is the second of the Company's Two Projects.
The Hernic Surface Material has been independently fully drilled
and assayed for chrome and PGM content. This has resulted in an
independent resource statement of 1.7 million tons, of which
approximately 90% of the resource is classified in the measured
category under the internationally recognised SAMREC code. Hernic
also has access to secondary surface stocks, which it has
internally identified and could increase the surface stocks to in
excess of 3 million tons through further drilling programmes. The
Project is estimated to contain total PGMs in excess of 224 000
(3PGM + Au) oz.
The Project will be the largest PGM beneficiation plant of
surface chrome tailings in South Africa and is capable of producing
annual revenues of GBP 18.2 million (ZAR 400 million*) at an
average metal basket price of USD 906 per (3PGM + Au) per oz. The
financial and operational risks of the Project are significantly
mitigated since the material is already at surface and requires
neither the cost nor the risk associated with mining.
An extensive prefeasibility study has been concluded on the
Project, which included both pilot scale and full commercial scale
trials to confirm the design and operational parameters.
The Project is to be undertaken in four phases over an 11 month
period; namely
ü Phase one - Bankable Feasibility Study and Engineering Design.
-- Completed.
ü Phase two - Construction of the chrome and platinum processing
plant ("Processing Plant"). - On-going
ü Phase three - Commissioning and Ramp up of Processing Plant to
design capacity of 55 000 tons per month. - On-going
ü Phase Four - Stable operation of the Processing Plant.
The Company has targeted a combined processing of platinum
containing surface material over the two projects in excess of 900
000 tons per annum.
The ZAR-based debt funding for both surface projects equates to
GBP 11.5 million (ZAR 255 million*) before financing costs. The
working capital required to bring the two surface projects into
operation and to achieve positive earnings is estimated at GBP 3.4
million (ZAR 75 million*).
*=Conversion as at the commencement of the Project
This information is provided by RNS
The company news service from the London Stock Exchange
END
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