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JUBILEE PLATINUM PLC - Operations update

Release Date: 14/12/2012 09:00
Code(s): JBL
Wrap Text
Operations update

Jubilee Platinum Plc
AIM: JLP JSE: JBL
Registration number: 4459850
ISIN GB0031852162
("Jubilee" or the “Company")


Update on Processing of Platinum Containing Dilokong Tailings
and Issue of Shares


Jubilee, the AIM and JSE quoted mine-to-metal specialist, is
pleased to provide a significant update on its operations and
progress with various agreements with respect to Dilokong
Chrome Mine tailings (“Dilokong Tailings”).
Highlights


-   Further to the announcement on 21 November 2012 the Company
    and its subsidiary Pollux Investments has concluded a toll
    processing agreement (“Toll Agreement”) with Phokothaba (a
    subsidiary of Platinum Australia) in respect of processing
    the Dilokong Tailings at Phokothaba’s Smokey Hills Mine
    concentrator. The Toll Agreement accelerates the processing
    of the tailings by some 14 months to commence during the
    first half of 2013.


-   The parties to the Toll Agreement have commenced
    consultation, expected to be concluded by January 2013, with
    parties and local communities who may be affected by the
    transport and movement of Dilokong Tailings from the
    Dilokong Chrome Mine to the Smokey Hills Mine.


-   Funding of £573,750 has been secured, via a Standby Equity
    Distribution Agreement ("SEDA") advance pursuant to the SEDA
    agreement announced on 15 March 2011, which will be used
    towards settlement of a SEDA backed loan. Under the SEDA
  advance 7,913,799 ordinary shares are being issued at a
  subscription price of £0.0725 per ordinary share.




Leon Coetzer, Chief Executive Officer of Jubilee, said: "The
conclusion of these processing agreements has the effect of
bringing forward the targeted processing of Dilokong Tailings
by some 14 months as well as avoiding an estimated capital
expenditure of GBP 8,000,000 for the construction of a
dedicated processing plant for the upgrading of the platinum
in the tailings prior to smelting the material. The SEDA
advance addresses any pressure on funding as we accelerate the
project and bring the operation into production within the
first half of 2013. We are now funded for production of own
platinum concentrates in 2013 and can accelerate the
development of our next platinum assets in the western limb of
the Bushveld Igneous Complex."
Under the Toll Agreement, Jubilee has the exclusive right to
process a targeted 40,000 to 50,000 tonnes of platinum-bearing
tailings per month from the Dilokong Chrome Mine to produce an
estimated 1,600 oz 4E (platinum, palladium, rhodium and gold)
in concentrate per month for an exclusive period of eight
months, with an option to extend the period on a non-exclusive
basis.
Andrew Sarosi, Executive 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 7600 1658


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


Johannesburg
14 December 2012


Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)

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