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Renewal of cautionary and update on proposed merger with Platinum Austraulia Ltd
Jubilee Platinum plc
(Registration number 4459850)
JSE share code: JBL
AIM share code: JLP
ISIN: GB0031852162
(“Jubilee” or “the Company”)
RENEWAL OF CAUTIONARY ANNOUNCEMENT, RELATING TO THE PROPOSED MERGER
TRANSACTION BY JUBILEE WITH PLATINUM AUSTRALIA LTD (“PLA”)
Jubilee Platinum, the AIM and JSE Limited quoted mine-to-metal
specialist, is pleased to announce that, further to the prior
cautionary announcement of 29 January 2013, the Company, Platinum
Australia Ltd (“PLA”) and the latter’s senior creditor have agreed
terms for settlement of PLA’s senior debt. Consequently, the Company
and PLA have agreed to extend the Heads of Agreement to 15 February
2013 in order to seek to conclude the Implementation Agreement for the
proposed merger of PLA and Jubilee (the “Proposed Transaction”). The
due diligence investigations are largely complete, and the binding
Implementation Agreement is in the final stages of negotiation,
pending completion of accounts for finalising the merger ratios. The
Company will provide further details on the Proposed Transaction on
conclusion of the Implementation Agreement.
On the current timetable, completion of the Proposed Transaction is
projected for May 2013.
The transaction will create a platinum mining group with the potential
to be a significant producer within the top five platinum producers in
the World. The due diligence investigations conducted by the parties
have confirmed that significant synergies could be achieved by merging
PLA with Jubilee.
Leon Coetzer, Chief Executive Office of Jubilee, said: “The Company
has successfully reached key milestones in the execution of the
Proposed Transaction. The agreement reached with the senior creditor
of PLA allows for the completion of the Implementation Agreement
within the coming days. As previously stated 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 large Tjate mining exploration asset, making the
enlarged group a significant low cost player in the platinum
industry.”
Commenting on the progress made to date, John Lewins, Director of
Platinum Australia, said: “The process of completing the due diligence
and the Independent Experts Report has served to highlight the clear
benefits and synergies achievable from the proposed merger to both
parties. With the major aspects of the proposed transaction agreed we
are confident of completing the outstanding details in the coming week
and concluding the Implementation Agreement.”
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.
Enquiries:
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
About Jubilee Platinum plc
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 PLA’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.
About Platinum Australia
Platinum Australia (ASX Code: PLA) owns 70% of the Smokey Hills
Platinum Mine which is a shallow underground operation capable of
producing up to 80,000 oz 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
oz 4E PGM 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 oz PGM per annum.
5 February 2013
Johannesburg
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
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