Wrap Text
cautionary announcement
JUBILEE PLATINUM PLC
AIM: JLP
JSE: JBL
Registration number: 4459850
ISIN: GB0031852162
("Jubilee" or "the Company")
CAUTIONARY ANNOUNCEMENT RELATING TO A PROPOSED MERGER OF
JUBILEE PLATINUM PLC WITH PLATINUM AUSTRALIA LTD
Jubilee is pleased to announce it is in an advanced stage of
discussions for a proposed business combination or merger
(“the Proposed Transaction”) by way of a proposed scheme of
arrangement (“Scheme”) with Australian listed Platinum
Australia Limited (“PLA”) (the “Parties”).
The Parties have exchanged a Heads of Agreement (HoA) defining
the key elements of the scheme which will be used to prepare
the final scheme implementation agreement.
The Company apologises for the sudden late release of this
announcement, which it is obliged under regulatory
requirements to do so as soon as it is aware of potentially
price sensitive information.
Highlights of the Proposed Transaction
The merger will create a large Anglo-Australian-South African
platinum mining group with the potential to be a significant
producer within the top 5 platinum producers in the World.
Jubilee’s announced agreement with PLA to use PLA’s Smokey
Hills Mine concentrator agreement accelerates the processing
of Dilokong tailings by some 14 months to commence during the
first half of 2013.
The reopening of the Smokey Hills Mine which is fully
capitalised and ready for production would provide the
combined group with annualised production of 70,000 oz per
annum of platinum group metals. It is expected that the mine
would be brought into production during the second half of
2013.
The combined group would have access to the ConRoast process
for its future concentrate production.
With the exception of Tjate all of the projects are near term
with relatively low capital requirements. It is intended that
the combined group grows its earnings profile from cash
generated by its own operations.
PLA holds the rights to the Rooderand Platinum project in the
western limb of the Bushveld complex which fits the production
model and compliments Smokey Hills Mine.
The combined management team has a solid track record of
operational and corporate delivery.
Leon Coetzer, Chief Executive Officer of Jubilee, said: “This
proposed transaction we believe will materially enhance
Jubilee’s Mine to Metals Strategy and we look forward to
working with PLA as a combined force to develop our respective
assets in the best interests of the shareholders of the two
companies.”
John Lewins, Director of Platinum Australia, said: “We believe
that Jubilee’s diverse platinum portfolio and cash flow
potential together with our Smokey Hills Mine and development
projects will result in a balanced group well able to take the
benefits of the anticipated improvement in the fortunes of the
platinum industry.”
Shareholders are advised to exercise caution when dealing in
their securities until a further announcement is made.
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
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
Jubilee Platinum plc is a mining exploration and development
company with a primary focus on platinum group elements (PGE).
Through recent acquisitions, the Company has added PGE and
ferroalloy smelting and refining to its capability. The
Company aims to create an integrated mine-to-metals company
with a primary focus on platinum. This mission is based on
modern and thoroughly-proven smelting technology to process
the Company’s own and other’s high-chrome PGE concentrates
and, importantly, to improve mining environments by
reprocessing mine tailings dumped by other miners.
The Company’s prime asset in South Africa is the Tjate
platinum project, in which it has a 63% beneficial interest.
The project’s exploration area is judged to host the world’s
largest undeveloped block of defined platinum ore, covering
some 5,140 hectares to a potential target of some 65 million
oz (41 million oz attributable) of PGEs and gold, net of
geological losses. Tjate Platinum Corporation, received a
formal offer from a major mining company to acquire for ZAR75
million (c.£5.95 million at current exchange rates) in cash,
for the Quartzhill farm portion of its Tjate Platinum
Project.
In October 2009, Jubilee acquired Braemore Resources plc,
which holds an exclusive licence to the ConRoast process for
the smelting of high chrome-bearing PGE concentrates and has
acquired extensive process development expertise. Jubilee’s
first goal is to complete the establishment of commercial
ConRoast operations to recover platinum group metals from
difficult-to-treat concentrates, residues and tailings. The
ConRoast plant is being established at the recently acquired
and strategically located ferroalloy smelting facility in
Middelburg.
Jubilee’s 70%-owned Power Alt (Pty) Ltd, that owns the on-site
11MW gas-fired electricity generation plant in Middelburg, has
been awarded a tender to supply 5.1MW of power to the national
electricity utility company worth an estimated ZAR12.4 million
(GBP970 000 at current exchange rates) in sales, for an
initial trial period of four months. The 5.1MW is surplus to
current requirements of the Company's Middelburg smelter and
more may become available following the review of continued
use of older furnaces.
Jubilee’s subsidiary company Pollux Investment Holdings (Pty)
Ltd (to be renamed Jubilee Tailings Treatment Company (Pty)
Ltd) has entered into an agreement with Phokathaba Platinum
(Pty) Ltd, a South African subsidiary platinum mining company
of Australian Stock Exchange listed Platinum Australia Ltd to
toll process the 800,000 tonnes of Dilokong Chrome Mine
platinum-bearing tailings using Phokathaba’s concentrator on
PlatAus’s Smokey Hills mine in the Eastern Bushveld. On 13
June 2012 Jubilee was awarded the right to recover the
platinum group metals contained in the Dilokong Tailings.
In Australia, Jubilee is evaluating the recovery of nickel
from the tailings of the Leinster mine in Western Australia.
The Company has rights through a tailings supply agreement
with BHP-Billiton to test and, if appropriate, to process the
nickel tailings from BHPB’s Leinster mine and conditionally
thereafter, from its Kambalda and Mount Keith operations.
Jubilee is dedicated to sustainable and socially responsible
development and, as a company, ensures its projects adhere to
the highest environmental standards. The Company is also a
firm proponent for the role of foreign direct investment as a
key form of social development in developing African
countries.
Platinum Australia (ASX Code: PLA) owns 70% of the Smokey
Hills Platinum Mine which is a shallow underground operation
capable of producing up to 80,000oz 4E PGM per annum. Due to
prevailing low metal prices the mine was placed on care and
maintenance in June 2012. It is currently planned to commence
treating chrome tailings through the Smokey Hills processing
plant in early 2013 and dependent on metal prices, to restart
underground mining operations during the second half of 2013.
The mine would be expected to ramp up to a production level of
approximately 70,000 oz PGM per annum in 2014.
PLA has two other advanced shallow PGM projects in South
Africa, the Rooderand Platinum Project (PLA earning 70% from
Atla Mining) and the Kalahari Platinum (PLA earning 49% from
ARMplatinum).
Following completion of a positive Pre Feasibility Study,
development of the 4 Moz 4E PGM Rooderand Project is planned
to commence as soon as a Mining Right is issued, expected in
early 2014. Development envisages an initial 10 year life open
pit operation, followed by a further 6 years of treatment of
low grade ore. This could be followed by a further 7 years of
production from underground, producing 120,000 4E PGM ozs per
annum.
Following the completion of a positive Definitive Feasibility
Study, development of the 6.7 Moz PGM open pit Kalahari
Platinum Project it is proposed to make application for a
Mining Right in early 2013 with a view to being in a position
to commence development in late 2014. The study envisages a
production rate of 100,000 ozs PGM per annum.
14 December 2012
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
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