Mine-to-metals company Jubilee Platinum has received the R110.5 million cash consideration for its Middelburg operations from Siyanda Resources for the disposal of Jubilee Smelting and Refining and its 70% stake in Power Alt.
The remaining 15% is held in escrow pending release following two warranty periods – 10% of which will be released from escrow after 90 days, while the remaining 5% will be released after 12 months.
The ownership and associated risk of the Middelburg operations were passed to Siyanda on 30 September 2015.
“The proceeds from the Disposal together with debt funding is being concluded with a major institution and, for which credit committee approval has already been secured, will be used for the simultaneous execution of our two platinum surface projects,” Jubilee Platinum CEO Leon Coetzer said in a statement.
Jubilee is now set to becoming a fully operational platinum producer in 2016 on the back of two robust surface platinum projects offering significant earnings potential to the company.
The platinum surface projects target processing 80 000 tpm of platinum-containing surface material and delivering an estimated production of 42 000 ozpa of PGMs in concentrate.
Jubilee says that it continues to seek further low cost platinum opportunities