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Acquisition of Platinum Australia Limited - Market update
Jubilee Platinum PLC
("Jubilee" or the "Company")
Registration number (4459850)
JSE share code: JBL
AIM share code: JLP
ISIN: GB0031852162
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into or from any jurisdiction where to do so would constitute a
violation of the relevant laws or regulations of such jurisdiction.
ACQUISITION OF PLATINUM AUSTRALIA LTD (“PLA”)
MARKET UPDATE
Highlights
- Jubilee successfully concludes a Memorandum of Understanding
(“MOU”) with Macquarie Bank Limited (“MBL”) to provide funding in
support of the proposed acquisition of PLA; and
- Jubilee and PLA reach agreement to reduce the consideration for the
proposed acquisition whereby PLA shareholders will hold 16.5% of the
issued share capital of Jubilee following the implementation of the
scheme of arrangement (the “Scheme”).
Jubilee, the JSE listed and AIM quoted Mine-to-Metals specialist, is
pleased to announce the successful negotiation of a MOU with MBL for
a US$10.5 million debt facility secured at project level in support
of Jubilee’s proposed acquisition of PLA under the Scheme.
Jubilee and PLA have further agreed, subject inter alia to the MOU
and to PLA shareholder approval, that PLA shareholders will now
receive one Jubilee share for approximately every 5.68 PLA shares
held calculated at current Jubilee shares in issue - significantly
reducing the dilution of Jubilee shareholders following
implementation of the Scheme. As such, PLA shareholders will hold
16.5% of the issued share capital of Jubilee following the
implementation of the Scheme.
To give full effect to and to formalise this MOU, PLA and Jubilee
have agreed to extend the “End Date” in clause 1.1 of the
Implementation Deed from 31 July 2013 to 30 September 2013 and the
PLA Deed Administrator has adjourned the Scheme meeting called for 30
July 2013 to allow PLA and Jubilee to incorporate the amendments to
the Scheme Booklet following both the signing of the MOU and the
adjusted scheme consideration.
Leon Coetzer, CEO of Jubilee, said:
“We are delighted to have received such significant backing from MBL
– PLA’s largest creditor. We are fully focused on completing this
acquisition and creating a platinum mining group with the potential
to be a significant player within the platinum producers in the
world. We are combining strongly complementary assets between Jubilee
and PLA that enable us to form a fully integrated Mine-to-Metals
company – able to exploit shallow resources in the near term while
continuing to develop Tjate in the longer term to the benefit of both
Jubilee and existing PLA shareholders.
“While the implementation period has been extended, we are extremely
pleased to have significantly reduced the cost and dilution to
Jubilee shareholders and look forward to further updating the market
in due course.”
Contacts
Jubilee Platinum plc
Colin Bird
Tel +44 (0) 20 7584 2155
Leon Coetzer
Tel +27 (0)11 465 1913
Andrew Sarosi
Tel +44 (0) 1752 221937
JSE Sponsor
Sasfin Capital, a division of Sasfin Bank Limited
Angela Teething-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
Tel +44 (0) 20 7562 3350
About Jubilee
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.
About Platinum Australia
Platinum Australia (ASX Code: PLA) owns 65.75% 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 September
2012. It is currently planned to commence treating chrome tailings
through the Smokey Hills processing plant in 2013 and dependent on
metal prices, to restart underground mining operations during 2014.
The mine would be expected to ramp up to a production level of
approximately 60,000 oz PGM per annum.
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).
30 July 2013
Johannesburg
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
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