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JUBILEE PLATINUM PLC - Transaction update

Release Date: 13/06/2013 08:00
Code(s): JBL     PDF:  
Wrap Text
Transaction update

JUBILEE PLATINUM PLC
AIM: JLP
JSE: JBL
Registration number: 4459850
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.

TRANSACTION UPDATE

Jubilee Platinum, the AIM quoted Mine-to-Metals specialist,
today provides further information regarding the proposed
acquisition by Jubilee of Platinum Australia Limited (“PLA”)
(the "Transaction").

Background

Jubilee's directors believe that the Transaction has the
potential to enable Jubilee to establish a fully operational
platinum mining and processing company backed by a strong
pipe-line of projects to drive future growth.     The Transaction
is planned to capitalise on the challenges faced by the
platinum sector, and the impact these challenges have had on
PLA, to the benefit of Jubilee's shareholders.

The conduct of the Transaction is governed by an
Implementation Deed (“ID”) entered into between the two
companies.     The ID provides for a number of potential
"regulated events" identified by the Board of Jubilee with a
view to protecting the company during the execution of the
transaction.    As such, mechanisms are in place which enable
the Company to negotiate an outcome to the best interest of
shareholders if any regulated events are triggered.
Update

On 11 June 2013, the Company updated shareholders on the
Transaction.    The announcement referred to the fact that one
of the specified regulated events had occurred.

The regulated event was that an application has been filed at
court in South Africa for a liquidation order against
PhokaThaba Platinum Pty Ltd (PhokaThaba).    PhokaThaba is a
South African subsidiary of PLA.    The ID, in this regulated
event, requires PLA to have the liquidation application set
aside or resolved within 14 days.    If the 14 day period lapses
without the liquidation application being set aside or
resolved, Jubilee has the right to terminate the Transaction.
Jubilee may engage with PLA during this period to discuss the
status of the Transaction without prejudice to Jubilee's right
to terminate.

The liquidation application has not been heard by the court in
South Africa nor has any judgement been passed on the validity
of the application.    In its announcement of 11 June 2013, PLA
advised that PhokaThaba will vehemently dispute the
application.

The next key milestone for the transaction is the first court
hearing in Australia for the approval of the Scheme of
Arrangement for the Transaction.    This court date has been
postponed to 20 June 2013 to provide PLA with the opportunity
to address the regulated event prior to the hearing.

The conclusion of the regulated event is required for Jubilee
to finalise the funding arrangements for the re-commissioning
of the Smokey Hills mine project and for this reason the
funding condition in the ID has been aligned with the revised
court date.    Importantly, this delay in the first court
hearing is not expected to delay the implementation date of
the Transaction.

While the delay in the first court date caused by the
regulated event is a frustration to the Jubilee board, it
gives PLA the opportunity to have the matter addressed whilst
allowing Jubilee to review the impact of the regulated event
on the transaction.

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

JSE Sponsor

Sasfin Capital, a division of Sasfin Bank Limited

Angela Teeling-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

13 June 2013

Sponsor

Sasfin Capital (a division of Sasfin Bank Limited)

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