Wrap Text
Execution of Platinum Tailings Agreement
Equity Financing
Jubilee Platinum PLC
Registration number (4459850)
AltX share code: JBL
AIM share code: JLP
ISIN: GB0031852162
("Jubilee" or “Company")
Execution of Platinum Tailings Agreement
Equity Financing
Highlights
Jubilee acquires rights to 1.25 million tonnes of new platinum-bearing surface material at estimated
grade of 2.7 g/t 4E PGMs (platinum, palladium, rhodium and gold) as well as all future platinum
bearing material processed
The acquisition is targeted to add 14 000 oz PGMs annually to Jubilee’s existing PGM production
from tailings and 3rd ore
The acquisition places the Company’s production trajectory at stable operations at 50 000 oz PGMs
per annum with no exposure to deep level mining
New material processing rate targeted at 25 000 t/m
Projected PGM grade of new tailings is exceptional compared with other similar material
New tailings location within near trucking distance of Hernic Project’s PGM processing plant but
option is available to Jubilee to construct dedicated PGM plant adjacent to new material
Acquisition cost of £3.13 (ZAR 50) per tonne of upgraded platinum surface material remaining after
the on-going further recovery of chromite
Financing for the acquisition secured via Placing.
Mine-to-Metals specialist Jubilee Platinum plc (AIM: JLP, AltX: JBL) is pleased to announce that it has
executed a Framework and Processing of Tailings Agreement (“the Agreement”) with PlatCro
Proprietary Limited ("PlatCro"). The Agreement provides for the acquisition of the platinum,
palladium, rhodium and gold (“4E“or “PGMs”) contained in the existing surface material as well as all
future material at the PlatCro. Existing surface material is estimated to be 1.25 million tonnes at an
estimated grade of 2.7 g/t 4E PGMs.
Leon Coetzer, Chief Executive Officer, says: “I am particularly pleased with this acquisition which
together with our existing platinum and chrome projects demonstrates that our long-term efforts
are accruing credibility within our industry and adding to shareholder value.
At stable operations the combined projected output from our projects is now targeting 50 000 oz
PGMs per year from tailings resources, which do not attract the burden and risk of hard rock mining.
Our object is to process the material in the short-term and utilise the cash flow from these
operations to further advance our mission. We continue to aggressively pursue further similar
opportunities.”
Jubilee will conclude its option study on the processing of the material post-chromite removal over
the next few months to determine whether to process the material through our existing Hernic plant
or to fast track the construction of a dedicated platinum processing plant.
Jubilee is targeting a processing rate of 25 000 tonnes per month to complement our platinum
production by a further 14,000 oz of PGMs per annum. This projects a total production target of
approximately 50 000 oz of PGMs per annum for Jubilee from all its surface tailings and 3rd party ore
projects.
Simultaneously with signature of the Agreement we have secured finance through an equity placing
to enable Jubilee to execute this value-adding platinum bearing tailings transaction, while ramping-
up production at Hernic and increasing production levels at Dilokong Chrome Mine (“DCM”) with the
acquisition of 3rd party chrome and platinum ore.”
Under the Agreement Jubilee will acquire PlatCro’s existing surface material for a total consideration
of £3.13 (ZAR 50) per tonne of surface material remaining after the on-going further recovery of
chromite from the surface material by PlatCro.
Approximately 79% of the surface material is estimated to remain following chromite removal,
which equates to a 4E PGM acquisition value of £3 million (ZAR 49.4 million). The Agreement allows
for a two-stage payment over an estimated three month period following the conclusion of the
Agreement.
The surface material is located within trucking distance of Jubilee’s Hernic operation, thereby
offering the opportunity to process the additional material at the Company’s existing Hernic plant
for PGM recovery. Jubilee also holds the option to acquire property located adjacent to the surface
material for the construction of a dedicated platinum processing plant, if deemed appropriate, and
at Jubilee’s election.
The Agreement is subject to conditions precedent normal for transactions of this nature, including
the completion of a due diligence investigation to the satisfaction of Jubilee.
Placing
The Company also announces that it has successfully completed a placing of 66 000 000 new
ordinary shares of 1 pence each ("Ordinary Shares") in Jubilee (the "Placing Shares") at a price of 5.0
pence (ZAR 78.70 cents) per share to raise approximately GBP 3.3 million before expenses (ZAR 51.9
million at current conversion rates).
The Placing Shares have been issued, conditional on Admission (as defined below), as fully paid and
rank pari passu in all respects with the existing ordinary shares, including the right to receive all
dividends and other distributions declared on or after the date on which they are issued.
Application will be made for the Placing Shares to be admitted to trading on AIM and to be listed on
the AltX of the JSE Limited, which is expected to take place on or about 31 March 2017
(“Admission”).
Following Admission, the Company's total issued share capital will comprise 1 118 360 942 Ordinary
Shares. As the Company does not hold any Ordinary Shares in treasury, this figure may be used by
shareholders in the Company as the denominator for the calculations by which they will determine if
they are required to notify their interest in, or a change to their interest in, the share capital of the
Company following Admission.
Andrew Sarosi, Director of Jubilee, who holds a B.Sc. Metallurgy and M.Sc. Engineering, University of
Witwatersrand and is a member of the Institute of Materials, Minerals and Mining, is a
"qualified person" as defined under the AIM Rules for Companies and a competent person under the
reporting standards. The technical parts of this announcement have been prepared under Andrew's
supervision and he has approved the release of this announcement.
Contacts
Jubilee Platinum plcColin 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
Sharon Owens
Tel +27 (0)11 809 7500
Nominated Adviser
PARK Advisory Partners Limited
Sean Wyndham-Quin/Mark Brady
Tel: +44 (0)203 368 3555
Broker
Beaufort Securities Limited
Jon Belliss
Tel: +44 (0) 20 7382 8300
United Kingdom
17 March 2917
Date: 17/03/2017 09:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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