Wrap Text
Renewal of cautionary announcement
Jubilee Platinum Plc
AIM: JLP JSE: JBL
Registration number: 4459850
ISIN GB0031852162
("Jubilee" or the “Company")
Renewal of Cautionary Announcement and Terms Sheet Funding Secured Relating to the Proposed
Merger Transaction by Jubilee with Platinum Australia Ltd (“PLA”)
INTRODUCTION:
Jubilee Platinum, the AIM and JSE Limited quoted mine-to-metal specialist, is pleased to announce
that, further to prior cautionary announcement of 16 January 2013, the Company has secured and
concluded indicative project financing in total, from financial institutions to reinstate operations at
the near surface Phokothaba Mine, which has currently been placed under care and maintenance by
PLA. Consequently, the Company and PLA have agreed to extend the Heads of Agreement to 04
February 2013, to conclude the Implementation Agreement to execute the proposed merger of PLA
(the “Proposed Transaction”). The Company will provide further details on the Proposed Transaction
on conclusion of the Implementation Agreement.
Leon Coetzer, Chief Executive Officer of Jubilee, said: “We are pleased with the Company’s progress
towards securing funding for the reinstatement of the Phokothaba Mine and we are moving
aggressively towards concluding the Proposed Transaction. The enlarged group would include the
combination of shallow and at-surface mining, a fully operable shallow mining operation and
smelters and exploration assets underpinned by the very large Tjate mining exploration asset,
making the enlarged group a significant low cost player in the platinum industry.”
RENEWAL OF CAUTIONARY:
As the Proposed Transaction is still in negotiation stages, shareholders are advised to continue to
exercise caution when dealing in their securities until a further detailed 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 7220 0500
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
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.
Update Merger with PLA Term Sheet Funding(SENS FINAL)
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
Update Merger with PLA Term Sheet Funding(SENS FINAL)
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.
29 January 2013
Johannesburg
Sponsor
Sasfin Capital (A division of Sasfin Bank Limited)
Date: 29/01/2013 02:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.