JUBILEE PLATINUM PLC - Market update on acquisition of PLA

Market update on acquisition of PLA

JUBILEE PLATINUM PLC
Registration number (4459850)
JSE share code: JBL
AIM share code: JLP
ISIN: GB0031852162
("Jubilee" or the "Company")


Not for release, publication or distribution in whole or in part in,
into or from any jurisdiction where to do so would constitute a
violation of the relevant laws or regulations of such jurisdiction.


ACQUISITION OF PLATINUM AUSTRALIA LTD (“PLA”)
MARKET UPDATE


Further to previous announcements, the last of which was released on
13 June 2013, Jubilee, the JSE listed and AIM quoted Mine-to-Metals
specialist, is pleased to provide shareholders with an update on the
proposed acquisition of PLA (“the Transaction”).


Shareholders were advised that a liquidation application out of the
High Court of South Africa (North Gauteng Provincial Division), dated
28 May 2013, was launched by Westdawn Investments (Pty) Ltd trading
as JIC Mining Services (“JIC”) against PhokaThaba Platinum (Pty) Ltd
(“PhokaThaba”) a subsidiary of PLA (“Liquidation Application”).   The
Liquidation Application triggered a regulated event as defined in the
Implementation Deed entered into between Jubilee and PLA as part of
the execution of the Transaction (“Regulated Event”).


Key features of the update
  -   Settlement value of ZAR R3.5million (GBP224,500) reached between
      PhokaThaba, PLA and JIC payable to JIC within 14 days from
      settlement date
  -   The Liquidation Application has been set aside
  -   The Regulated Event has been remedied
  -   The first court hearing for the approval of scheme of
      arrangement for the acquisition of PLA is confirmed for 20 June
      2013




On 18 June 2013 the Liquidation Application was set-aside by the
parties entering into a settlement agreement between PhokaThaba, PLA
and JIC whereby PhokaThaba and PLA agrees to pay an amount of ZAR
R3.5 million in full and final settlement of this matter (“Settlement
Agreement).   The Settlement Agreement remedies the Regulated Event
triggered under the Implementation Deed entered into between Jubilee
and PLA which allows the continuation of the First Court hearing
required to approve the Scheme of Arrangement for the acquisition of
PLA by Jubilee, scheduled for 20 June 2013.


Transaction Overview


The proposed transaction affords Jubilee the opportunity to acquire
ownership of a fully operational platinum mine and processing plant
supported by a shallow platinum bearing UG2 reef.      The mine's
location in the Eastern Bushveld Igneous Complex of South Africa’s
platinum region offers significant potential for both extending the
existing mine life by partnering with bordering mining companies as
well as processing of third party material.


  -   The Enlarged Group will result in a significant South African
      platinum group metals producer supported by strong prospects for
      expansion through the development of its near surface resources;
  -   Jubilee is able to accelerate its Mine to Metals strategy
      through the Transaction which would include a fully operational
      platinum mine and processing plant together with Jubilee’s
      operational smelting operation;
  -   Jubilee’s Mines to Metal strategy will be brought forward,
      directors believe, by some 18 months and the resultant earlier
      cash flow will position the Company well to secure further
      opportunities in the near-term;
  -   The input of Dilokong Chrome Mine tailings will enable the
      Smokey Hills Platinum Mine (“Smokey Hills”) to be brought back
      into production at a more modest output rate than previously
      designed thus extending mine life and ensuring that mine
      production targets are more achievable; and
  -   The Enlarged Group would have exclusive right to the ConRoast
      smelting process ("ConRoast"), enhancing earnings from its own
      production and giving access to third party earnings by entering
      into agreements to utilise ConRoast.

Leon Coetzer, CEO of Jubilee Platinum commented:

“The Transaction brings together strongly complementary assets
forming an enlarged group consisting of operational mining and
processing assets and at surface platinum containing chrome tailings
and surface stocks, supported by a pipe-line of near surface platinum
projects which are all underpinned by the large Tjate platinum
project.

The combination of these assets forms a unique platinum group metals
producer free of the burden of deep mining operations.

The Transaction offers a relatively unique opportunity to the Jubilee
shareholder to acquire a shallow fully operational platinum mine and
processing plant, complemented by near surface platinum projects
valued at a significant premium to the Transaction value.”
Contacts


Jubilee Platinum plc
Colin Bird
Tel +44 (0) 20 7584 2155
Leon Coetzer
Tel +27 (0)11 465 1913
Andrew Sarosi
Tel +44 (0) 1752 221937


JSE Sponsor
Sasfin Capital, a division of Sasfin Bank Limited
Angela Teething-Smith/Sharon Owens
Tel +27 (0) 11 809 7500


NOMAD
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




Bishopsgate Communications Ltd
Nick Rome/Anna Michniewicz/Ivana Petkova
Tel +44 (0) 20 7562 3350


19 June 2013
Johannesburg
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)

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