TIDMJLP
RNS Number : 7809Z
Jubilee Platinum PLC
17 March 2017
Jubilee Platinum PLC
Registration number (4459850)
AltX share code: JBL
AIM share code: JLP
ISIN: GB0031852162
("Jubilee" or "Company")
Execution of Platinum Tailings Agreement
Equity Financing
Highlights
-- Jubilee acquires rights to 1.25 million tonnes of new
platinum-bearing surface material at estimated grade of 2.7 g/t 4E
PGMs (platinum, palladium, rhodium and gold) as well as all future
platinum bearing material processed
-- The acquisition is targeted to add 14 000 oz PGMs annually to
Jubilee's existing PGM production from tailings and 3(rd) ore
-- The acquisition places the Company's production trajectory at
stable operations at 50 000 oz PGMs per annum with no exposure to
deep level mining
-- New material processing rate targeted at 25 000 t/m
-- Projected PGM grade of new tailings is exceptional compared with other similar material
-- New tailings location within near trucking distance of Hernic
Project's PGM processing plant but option is available to Jubilee
to construct dedicated PGM plant adjacent to new material
-- Acquisition cost of GBP3.13 (ZAR 50) per tonne of upgraded
platinum surface material remaining after the on-going further
recovery of chromite
-- Financing for the acquisition secured via Placing.
Mine-to-Metals specialist Jubilee Platinum plc (AIM: JLP, AltX:
JBL) is pleased to announce that it has executed a Framework and
Processing of Tailings Agreement ("the Agreement") with PlatCro
Proprietary Limited ("PlatCro"). The Agreement provides for the
acquisition of the platinum, palladium, rhodium and gold ("4E"or
"PGMs") contained in the existing surface material as well as all
future material at the PlatCro. Existing surface material is
estimated to be 1.25 million tonnes at an estimated grade of 2.7
g/t 4E PGMs.
Leon Coetzer, Chief Executive Officer, says: "I am particularly
pleased with this acquisition which together with our existing
platinum and chrome projects demonstrates that our long-term
efforts are accruing credibility within our industry and adding to
shareholder value.
At stable operations the combined projected output from our
projects is now targeting 50 000 oz PGMs per year from tailings
resources, which do not attract the burden and risk of hard rock
mining.
Our object is to process the material in the short-term and
utilise the cash flow from these operations to further advance our
mission. We continue to aggressively pursue further similar
opportunities."
Jubilee will conclude its option study on the processing of the
material post-chromite removal over the next few months to
determine whether to process the material through our existing
Hernic plant or to fast track the construction of a dedicated
platinum processing plant.
Jubilee is targeting a processing rate of 25 000 tonnes per
month to complement our platinum production by a further 14,000 oz
of PGMs per annum. This projects a total production target of
approximately 50 000 oz of PGMs per annum for Jubilee from all its
surface tailings and 3(rd) party ore projects.
Simultaneously with signature of the Agreement we have secured
finance through an equity placing to enable Jubilee to execute this
value-adding platinum bearing tailings transaction, while
ramping-up production at Hernic and increasing production levels at
Dilokong Chrome Mine ("DCM") with the acquisition of 3(rd) party
chrome and platinum ore."
Under the Agreement Jubilee will acquire PlatCro's existing
surface material for a total consideration of GBP3.13 (ZAR 50) per
tonne of surface material remaining after the on-going further
recovery of chromite from the surface material by PlatCro.
Approximately 79% of the surface material is estimated to remain
following chromite removal, which equates to a 4E PGM acquisition
value of GBP3 million (ZAR 49.4 million). The Agreement allows for
a two-stage payment over an estimated three month period following
the conclusion of the Agreement.
The surface material is located within trucking distance of
Jubilee's Hernic operation, thereby offering the opportunity to
process the additional material at the Company's existing Hernic
plant for PGM recovery. Jubilee also holds the option to acquire
property located adjacent to the surface material for the
construction of a dedicated platinum processing plant, if deemed
appropriate, and at Jubilee's election.
The Agreement is subject to conditions precedent normal for
transactions of this nature, including the completion of a due
diligence investigation to the satisfaction of Jubilee.
Placing
The Company also announces that it has successfully completed a
placing of 66 000 000 new ordinary shares of 1 pence each
("Ordinary Shares") in Jubilee (the "Placing Shares") at a price of
5.0 pence (ZAR 78.70 cents) per share to raise approximately GBP
3.3 million before expenses (ZAR 51.9 million at current conversion
rates).
The Placing Shares have been issued, conditional on Admission
(as defined below), as fully paid and rank pari passu in all
respects with the existing ordinary shares, including the right to
receive all dividends and other distributions declared on or after
the date on which they are issued. Application will be made for the
Placing Shares to be admitted to trading on AIM and to be listed on
the AltX of the JSE Limited, which is expected to take place on or
about 31 March 2017 ("Admission").
Following Admission, the Company's total issued share capital
will comprise 1 118 360 942 Ordinary Shares. As the Company does
not hold any Ordinary 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.
Andrew Sarosi, 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's supervision
and he has approved the release of this announcement.
17 March 2017
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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