JUBILEE PLATINUM PLC - Jubilee secures funding for the expansion of the Middleburg smelters

Jubilee secures funding for the expansion of the Middleburg smelters

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


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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.


JUBILEE SECURES FUNDING FOR THE EXPANSION OF THE MIDDELBURG SMELTERS
AND SETTLEMENT OF POWER STATION DEBT


Jubilee, the AIM and AltX quoted Mine-to-Metals Company, is pleased
to announce the conditional placing of convertible loan notes (“Loan
Notes”) to Darwin Strategic Limited (“Darwin”). The issued Loan Notes
are for a total principle par value of £1.85m before expenses.

Key Features of the Loan Notes:-

- Proceeds will fund the commissioning of the 3rd ARC furnace at the
Middelburg Smelters on the back of the new processing agreement
awarded to Jubilee as announced on the 5th of December 2013

- Settlement of all remaining debt held in Jubilee’s power plant
subsidiary, Power Alt, which enables Jubilee to access all surplus
cash flow from the power operations

- The convertible note results in all of Jubilee’s subsidiaries being
debt free save for the Loan Notes

The commissioning of the 3rd Arc furnace at Middleburg is an integral
part of the Company’s development plans for the Middelburg Smelter
operations with a view to increasing its earnings growth profile.
Once commissioned, the Company will have a total of two ferroNickel
and one ferroSilicone smelters in operations.

 With new contracts in place (as announced on 5 December 2013), the
Company hopes to build on the strong performance of the existing
infrastructure in place.

Once the recommissioning of the 3rd furnace is complete the targeted
total smelter design capacity will be approximately 13,800 tons of
metal per annum

Leon Coetzer CEO of Jubilee said:   “We are pleased to have secured
this funding which allows us to implement the Middelburg Smelter
expansion after successful renegotiation of smelter contracts.        We
expect the expansion to be concluded during Q1 2014.


“As stated previously, the expansion of the Smelter operations is the
final phase of our expansion programme and this phase will facilitate
a rapid growth in the earnings profile.   The issue of the loan notes
demonstrates that we now have more options available to us without
the need to dilute through equity issues. The additional monies mean
that all of our subsidiaries will be debt free save for the Loan
Notes.


“I am pleased that Darwin is supporting us with this convertible note
and we welcome them as strategic investors into our company. This
convertible note is off equity and as such satisfies our wish to grow
without major dilution that current market conditions would create.



Principal key terms of the Loan Notes:-

The Loan Notes of £50 000 each, with a maturity of two years, have a
conversion price (“Conversion Price”), which will be the lesser of 5p
or 94% of the arithmetic 5-day average price selected by the investor
during the 20 trading days preceding the date of conversion. Jubilee
has the option to redeem the loan notes early at its absolute
discretion in cash at £52 500 each.

Warrants to the value of half of the value of the Loan Notes have
been offered and priced at a 30% premium to the share trading price
on the trading date preceding the execution of the Loan Note. The
warrant period is for 3 years and 7 days following the execution of
the Loan Notes.

The proceeds from the issue of the Loan Notes will be used towards
implementation of the 4th phase of Middelburg smelter development
(announced 5 December 2013), the settlement of the senior creditor
Investec in respect of its loan to Power Alt (Pty Ltd (70% owned by
Jubilee) and working capital.

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
Leonard Eiser/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


Bishopsgate Communications Ltd
Nick Rome/Anna Michniewicz
Tel +44 (0) 20 7562 3350


23 December 2013
Johannesburg

Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)

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