REG - Jubilee Platinum PLC - Access Agreement Executed <Origin Href="QuoteRef">JLP.L</Origin>

Jubilee MetalsAnnouncement

06/09/2014 02:01

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RNS Number : 1075J
Jubilee Platinum PLC
09 June 2014 
 
Registration number (4459850) 
 
AltX share code: JBL 
 
AIM share code: JLP 
 
ISIN: GB0031852162 
 
9 June 2014 
 
Jubilee Platinum PLC 
 
("Jubilee" or the "Company") 
 
Processing of Tailings Dam Agreement Concluded 
 
Issue of Equity 
 
Appointment of Broker 
 
Jubilee, the AIM-quoted and AltX-listed Mine-to-Metals specialist, is pleased
to announce that the Company has executed a Tailings Access Agreement 
("Access Agreement") with ASA Metals Proprietary Limited ("ASA") and its
subsidiary Dilokong Chrome Mines Proprietary Limited ("DCM").Under the Access
Agreement, Jubilee is, inter alia, awarded the exclusive right to access the
PGM - bearing tailings ("Surface Stock") on the DCM mine area (the "Mining
Area"), and the right to construct, a dedicated chrome and PGM processing
plant ("New Processing Plant") on the Mining Area to process the Tailings. In
addition, ASA has agreed to give Jubilee access to sufficient power and water
for the construction and operation of the New Processing Plant. 
 
Highlights 
 
·     Jubilee executed the Access Agreement with ASA and DCM for the recovery
of platinum group metals ("PGM") and Chrome from the surface tailings dam
estimated at 800 000 tons of material containing an estimate of 74 000 4E PGM
ounces; 
 
·     The Access Agreement offers Jubilee the option to construct in
partnership with ASA a dedicated chrome and PGM processing plant for the
treatment of the Tailings on  ASA's DCM property ("New Plant"); 
 
·     The Access Agreement paves the way for establishing an independent
processing facility for the processing of platinum containing chrome ore in
the Eastern Limb of South Africa's platinum and chrome belt; 
 
·    In terms of the Access Agreement, ASA has agreed to provide access to
adequate power and water and other auxiliary services for the operation of the
New Plant; 
 
·     Jubilee could process a minimum of 180 000 tonnes Surface Stock per year
or such other amounts as may be agreed between the Parties, taking into
account the capacity of the New Plant; 
 
·     DCM continues to deposit further tailings onto the surface tailings dam
at an estimated rate of 8,000 to 12,000 tons per month further increasing the
estimated 800 000 tons of material available for processing. 
 
The Access Agreement paves the way for the establishment of an independent PGM
and Chrome processing facility for the treatment of platinum containing chrome
ores along the Eastern Limb of the South African platinum belt. The Company
has secured the exclusive right to construct a purpose-built PGM and chromite
processing plant adjacent to the surface Tailings and the ASA smelting
operation. The targeted area is well served with appropriate infrastructure
and is environmentally fully permitted. The Company continues negotiations
with PhokaThaba Platinum Proprietary Limited, a subsidiary of Platinum
Australia Limited ("PLA"), to process the DCM tailings at their processing
facility in the interim. 
 
Jubilee has furthermore entered into advanced discussions with ASA for the
further expansion of the proposed New Plant to target the processing of 3rd
party chrome and platinum containing ore in the region.  Numerous chrome
mining opportunities are being explored in the region that requires access to
a purpose designed PGM and chrome processing facility which offers a
partnership with a FerroChrome producer. Jubilee is also in the process of
discussing, with a number of financial institutions, the funding of the New
Plant. 
 
Leon Coetzer, CEO of Jubilee, says: "This agreement is a significant target
milestone for the Company in order to bring to production our acquired rights
to platinum containing surface material while simultaneously progressing its
PGM processing strategy serving the larger Eastern Limb of South Africa's
platinum belt. 
 
"ASA has been very supportive through this process and we are working together
towards implementing a processing solution in the shortest possible time line.
 We are jointly reviewing the time-lines and cost to accelerate the
implementation of the New Plant. 
 
"A purpose built PGM and Chrome processing plant, adjacent to the surface
tailings, eliminates the significant transport cost associated with the
haulage of the tailings to a toll processor and the environmental
considerations associated with the use of local community roads. We have
continued discussions with PLA to toll process the tailings material in the
interim period while the New Processing Plant is executed. 
 
"Our focus is now to fast track the implementation of the best process plant
options to realise the Company's strategy of bringing into production its
acquired surface platinum-bearing material and ultimately to migrate its
Smelter operation onto the processing of platinum concentrates." 
 
As previously announced on 2 October 2013, Jubilee's subsidiary Pollux
Investment Holdings Proprietary Limited ("Pollux") acquired the sole right to
process the PGMs from CMR for the Tailings ("Treatment of Tailings
Agreement"). Further to the acquisition of the rights and the successful
conclusion of the Access Agreement, a payment of ZAR 5 million (GBP 0.18
million) is payable to Sapila Capital in lieu of corporate advisory services
rendered in relation to the project. A balance of ZAR 2 million (GBP 0.09
million) is also due to AVACAP Proprietary Limited upon successful conclusion
of the Access agreement. The above payments will be settled through the issue
of 18 034 104 new Jubilee ordinary shares ("Shares") at a price of 1.73 pence
per share being the 30 day Volume Weighted Average price of Jubilee on 5 June
2014, the date that the Access Agreement was concluded. 
 
Application is being made for the Shares to be listed on AltX and admitted to
trading on AIM ("Admission") which is expected to occur on or around 17 June
2014. 
 
The total issued share capital of the Company will be 542,349,046 shares
following the Listing and Admission of the Shares. The Shares will, from the
date of allotment and issue, rank pari passu in all respects with the existing
ordinary shares in the issued share capital of Jubilee. The Company holds no
ordinary shares in treasury. 
 
Jubilee is further pleased to announce the appointment of Daniel Stewart and
Company PLC as its Broker with immediate effect. 
 
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 
 
NOMAD 
 
finnCap Ltd 
 
Matthew Robinson/Ben Thompson - corporate finance 
 
Joanna Weaving - corporate broking 
 
Tel +44 (0) 20 7220 0500 
 
Broker 
 
Daniel Stewart and Company PLC 
 
Paul Shackleton / David Coffman 
 
Tel: +44 (0) 207 776 6550 
 
JSE Sponsor 
 
Sasfin Capital, a division of Sasfin Bank Limited 
 
Sharon Owens / Megan Young 
 
Tel +27 (0) 11 809 7500 
 
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The company news service from the London Stock Exchange