Johannesburg, South Africa — MININGREVIEW.COM — 26 March, 2008 – AIM and JSE-listed Jubilee Platinum plc – a mining exploration and development company with a focus on platinum group metals, nickel and copper – is to boost its shareholding in its flagship Tjate project, on the eastern limb of South Africa’s Bushveld complex, to almost 49%.
A company announcement in London confirms that the South African Reserve Bank has given its approval for Jubilee to purchase a 49% interest in NewPlats (Tjate) (Pty) Limited. This purchase of interest in NewPlats – who are shareholders of Tjate Platinum Corporation (Pty) Limited (Tjate) – increases Jubilee’s direct and indirect interest in the Tjate Platinum project to 48.72%.
“The purchase consideration is by way of issue to NewPlats shareholders of 7.7 ordinary shares in Jubilee at R8.91 per ordinary share, representing a total price of R68.6 million for the increased shareholding in Tjate,” the announcement continued. “Application will be made to list these shares on the JSE and AIM.”
Jubilee CEO Colin Bird commented:“In consummating this purchase of an interest in our economic empowerment partner NewPlats, we have increased our beneficial interest in the Tjate project, and at the same facilitated economic participation of NewPlats in Jubilee. We believe this transaction enhances value for Jubilee shareholders, and we look forward to working with NewPlats and our other partners in Tjate to advance the project towards completion of its feasibility study.”
Tjate holds old order prospecting rights on three contiguous farms in the eastern Bushveld, namely Dsjate, Fernkloof and Quartz Hill. The Tjate property is inferred to contain some 65 million oz of PGMs plus gold, of which some 23 million oz is attributable to Jubilee. The application for conversion of the old order rights has been accepted by the Department of Minerals and Energy (DME), and the granting of the converted rights is believed to be imminent.