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Platinum Australia Limited transaction and DCM tailings update
JUBILEE PLATINUM PLC
AIM: JLP
JSE: JBL
Registration number: 4459850
ISIN: GB0031852162
("Jubilee" or "the Company")
PLATINUM AUSTRALIA LIMITED TRANSACTION AND DCM TAILINGS UPDATE
Jubilee, the AIM-quoted and Altx - listed Mine-to-Metals specialist, announces that in mutual
agreement with Platinum Australia Limited (“PLA”) it was concluded that the proposed
transactional structure as described in the current Implementation Deed (“ID”), entered into
between the Company and PLA on 25 February 2013, no longer represents optimal value for
the Jubilee’s shareholders given current market conditions. Consequently, the parties have
agreed to terminate the ID which proposed the acquisition by Jubilee of 100% of the ordinary
shares in PLA by way of a scheme of arrangement (the “Transaction”).
Both companies have however agreed to continue discussions with a view of targeting terms
that are more mutually beneficial and are focused more towards the funding of the re-
commissioning of the mining and processing operation - which includes the processing of
Jubilee’s platinum containing chrome tailings material as envisaged in the Company’s
operations update announced on 30 January 2014.
As stated in previous updates, the escalation in the PLA debt has hindered the Transaction
since the majority of funding raised for the Transaction would not be utilised to re-commission
the operations but instead was required for the settlement of increased debt against a lower
than expected platinum metal price.
Dilokong Chrome Mine (“DCM”) Tailings
Jubilee’s subsidiary Pollux Investment Holdings Pty Ltd (“Pollux”) was awarded the
processing rights to recover the platinum group metals (“PGM”) contained in the estimated
800,000 tonnes of DCM surface tailings. It concluded the PGM processing agreement with
PhokaThaba Platinum Pty Ltd (“PhokaThaba” or “Smokey Hills”) a subsidiary of PLA for the
beneficiation of the PGM’s and chrome contained in the DCM tailings in November 2012. As
announced previously Jubilee has been frustrated by PLA’s inability to commit to a
commencement date for the toll processing of the DCM tailings.
DCM continues to deposit further tailings onto the surface tailings dam at an estimated rate of
8,000 to 12,000 tons per month and Jubilee is focused on processing the DCM tailings. As
such, it is actively exploring an alternative strategy and has engaged in discussions with other
parties that could provide plant and infrastructure with a view to commencing processing
should the discussions with PLA not be concluded shortly.
The strategy includes the possibility of processing the DCM tailings in a fit-for-purpose
processing plant to be located adjacent to the DCM surface tailings therefore avoiding the
transport of the material to a toll processor.
Jubilee has secured indicative terms for the provision of power, water and surface
infrastructure for such a processing plant and initial investigations have indicated that key
processing equipment required for such a plant is readily available within the current market.
Jubilee will keep shareholders updated on the outcome of these discussions as we remain
committed to bringing the beneficiation of the platinum containing surface material into
operation.
Leon Coetzer, CEO of Jubilee, commented: “The strategic fit of the combined assets between
Jubilee and PLA has never been in question however, given current market conditions, the
escalating debt position of PLA within the transactional structure as originally targeted in the
ID impacted the value proposition to Jubilee shareholders. The termination of the ID is an
important step towards progressing discussions aimed at achieving a mutually favourable
outcome for both Jubilee and PLA shareholders.
“The processing of the DCM tailings could significantly enhance Jubilee's earnings capability
to further enhance shareholder value. The material is at surface and therefore does not incur
any mining cost and is suited for the further refining in the ConRoast process to which Jubilee
holds the exclusive rights. The earnings capability of this project would further enhance the
targeted earnings for the Middelburg smelter operation.”
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
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 7107 1890
13 March 2014
Johannesburg
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
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