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JUBILEE PLATINUM PLC - Market update on disposal

Release Date: 19/06/2013 08:30
Code(s): JBL     PDF:  
Wrap Text
Market update on disposal

Jubilee Platinum PLC
Registration number (4459850)
JSE share code: JBL
AIM share code: JLP
ISIN: GB0031852162
("Jubilee" or the "Company")


SHAREHOLDER UPDATE ON THE DISPOSAL OF NON-CORE ASSETS BY JUBILEE


Shareholders are referred to the announcements dated 28 May and 3
June 2013 in relation to the Sale of Shares agreement (“Agreement”)
with Global Renewal Energy Limited (“GRE”), in terms of which GRE has
agreed to acquire the issued share capital of Jubilee Smelting and
Refining (Pty) Ltd (“JSR”), a wholly owned subsidiary of Jubilee and
the 70% of the issued share capital of Power Alt (Pty) Ltd
(“PowerAlt”) owned by Jubilee (collectively “Sale Shares”), for an
aggregate cash consideration of US$14 million (“Transaction”).


The Transaction may be executed over two tranches, namely a disposal
which includes the sale of 65% of the issued share capital of JSR and
40% of the issued share capital of PowerAlt (“the Disposal”) and an
option whereby Jubilee retains an exclusive put option for the
remaining share capital held by the Company (“the Option”).


Consideration for the Disposal comprised a non-refundable deposit
payment of US$200,000 which has been received by Jubilee, plus an
amount of US$8,866,496 which was due to be paid on or before 14 June
2013 (the "Second Payment").


The Second Payment was not made by the due date and, at GRE's
request, Jubilee and GRE have agreed the following amendments and/or
additions to the Agreement:

  - Deferral of the Second Payment date to a date no later than 31
     July 2013, with an initial extension granted until 1 July 2013
     (“Initial Extension”);

  - The Initial Extension is subject to:-
       - An immediate additional payment by GRE of ZAR5.6 million
           (US$0.56 million) in settlement of   specified creditors of
           JSR and PowerAlt and additionally to fund the continued
           upgrade of the Middelburg smelter complex to allow for the
           processing of additional material; and
       - GRE making payment of interest on the Second Payment of ZAR
           334 950 (US$33,495); and
       - additionally GRE is to fund any working capital required
           from time to time for JSR and PowerAlt irrespective of
           Jubilee’s continued shareholding in both JSR and PowerAlt
           until the Second Payment is made.


Leon Coetzer, CEO of Jubilee Platinum, said:


“The proposed disposal of our non-core assets will leave us well
placed to develop our platinum Mine-to-Metals strategy. Importantly
Jubilee retains the utilisation of the new 5MW DC arc furnace at
Middelburg for the processing of platinum containing materials.
Jubilee has agreed to the extension of the Second Payment based on
the additional funding to be provided by GRE and their continued
commitment to fund the upgrade of the furnace off-gas system to
increase the production of the smelting complex.


“The interim funding structure ensures that all short term funding
for both working capital as well as upgrades to the operation are
funded by GRE until the Second   Payment has been received”




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


19 June 2013
Johannesburg


Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)

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