AIM/AltX listed mine-to-metals specialist Jubilee Platinum has executed a framework and processing of tailings agreement with Platcro.The agreement provides for the acquisition of the platinum, palladium, rhodium and gold contained in the existing surface material as well as all future material at PlatCro. Existing surface material is estimated to be 1.25 Mt at an estimated grade of 2.7 g/t 4E PGMs.
“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,” says Jubilee Platinum CEO, Leon Coetzer.
“At stable operations the combined projected output from our projects is now targeting 50 000 oz PGMs per year from tailings resources. This does 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,” he continues.
[quote]Jubilee Platinum 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 the company's existing Hernic plant or to fast track the construction of a dedicated platinum processing plant.
Jubilee Platinum is targeting a processing rate of 25 000 tpm to complement its 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 third party ore projects.
Simultaneously with signature of the agreement Jubilee Platinum has 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 with the acquisition of third party chrome and platinum ore.
Under the agreement Jubilee Platinum will acquire PlatCro’s existing surface material for a total consideration of £3.13 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. 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 Platinum’s Hernic operation, thereby offering the opportunity to process the additional material at the company’s existing Hernic plant for PGM recovery.
Jubilee Platinum 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 Platinum’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 Platinum.
The company has also announced that it has successfully completed a placing of 66 000 000 new ordinary shares of 1 pence each in Jubilee Platinum at a price of 5.0 pence per share to raise approximately £3.3 million before expenses.
The placing shares have been issued, conditional on admission, 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, which is expected to take place on or about 31 March 2017.
Following admission, the company's total issued share capital will comprise 1 118 360 942 ordinary shares.