JUBILEE METALS GROUP PLC - Jubilee acquires major Chrome Processing Operation

Jubilee acquires major Chrome Processing Operation

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

Jubilee Platinum PLC
("Jubilee" or the "Company”)

Jubilee acquires major Chrome Processing Operation


Highlights

    -   Jubilee acquires major chrome operation currently processing 75 000 tonnes per month for a
        consideration of £8.6 million
    -   Acquisition includes existing chrome and platinum containing surface material in excess of
        1,8 million tonnes
    -   The acquisition provides Jubilee with a strategic position within South Africa’s PGM and
        chrome rich western bushveld complex
    -   This acquisition consolidates the chrome and PGM operations at PlatCro and will significantly
        enhances future earnings from PGMs and chrome
    -   The current operation will more than double Jubilee’s existing chrome processing capacity
    -   The acquisition of additional 3rd party ore together with enhanced processing efficiencies will
        further
    -   Jubilee intends to increase processing efficiencies and operational capacities and targeting
        further 3rd party material in the area


Leon Coetzer, Chief Executive Officer says: “This transaction repositions Jubilee in the
chrome/platinum arena in South Africa. Our integrated processing hub offers leading processing
access to the various independent mines free of the capital and regulatory burden associated with own
build.

The acquisition comes along with intellectual property rights and rights to the existing surface material
already exceeding 1, 8 million tonnes. With the integration of our PlatCro PGM project we anticipate
the processing of 65 000 tonnes of PGM rich materials and 80 000 tonnes of chrome materials per
month of processing capacity.

The operation currently achieves annual earnings from chrome alone in excess of USD5.5million
before the contribution of PGMs. We see significant opportunity to increase earnings by increased
through put and improved operational efficiencies.

I am particularly pleased that this acquisition has been enabled by our current cash and project finance,
with minimal dilution to our shareholders.”


Salient features of the Acquisition
Jubilee announces that it has executed a sale and purchase agreement to acquire all of the chrome
beneficiation assets including plant, equipment, intellectual property and all rights to the existing
surface material estimated in excess of 1, 8 million tonnes (“Assets”) owned by PlatCro Minerals (Pty)
Ltd (“PlatCro”) and associated companies (“the Target”), for a combined consideration of £8.26
million (USD10.5 million) (“the Acquisition”). The business is acquired free from any historic
liabilities. The Target currently generates earnings of approximately £4.3 million (USD5.5 million).

The Assets acquired include:

    -   Plant and equipment offering processing capacity in excess of 75 000 tonnes per month
    -   All associated property including all rights to existing surface material
    -   All stock and materials accolated with operating the business

The aggregate purchase price for the Acquisition shall be payable by Jubilee to the Target on 7 January
2019, save for the amount of £0.67 million (USD0.85 million) which will become payable by Jubilee
to the Target upon successful registration of the property into Jubilee or its nominee’s name. Jubilee
will take ownership and operational control of the Target on the 7th of January 2019.

The purchase price will be funded through:

    -   Secured project financing to the value of USD6 million;
    -   A cash payment of USD2.83 million; and
    -   The issue of 52,493,438 new Jubilee shares (“Acquisition Shares”) at a price of 2.5 pence per
        share


Issue of equity
The Acquisition 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 Acquisition 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 14 December 2018 (“Admission”).
Following Admission, the Company's total issued share capital will comprise 1,363,486,229 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.
The information contained within this announcement is considered by the Company to constitute inside
information as stipulated under the Market Abuse Regulation (EU) No.596/2014. Upon the publication
of this announcement via a Regulatory Information Service, this inside information will be considered
to be in the public domain.


10 December 2018

Jubilee Metals Group PLC
Colin Bird/Leon Coetzer
Tel +44 (0) 20 7584 2155 / Tel +27 (0) 11 465 1913


Nominated Adviser

SPARK Advisory Partners Limited
Andrew Emmott/Vassil Kirtchev
Tel: +44 (0) 203 368 3555

Broker

Shard Capital Partners LLP
Damon Heath/Erik Woolgar
Tel +44 (0) 20 7 186 9900

JSE Sponsor

Sasfin Capital (a member of the Sasfin group)
Sharon Owens
Tel +27 (0) 11 809 7500

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