Jubilee Platinum, the AIM and AltX-listed mine-to-metals company, has secured fully funded equity against its debt funding to construct its two surface platinum tailings projects.
In doing so, Jubilee has placed about 71.83 million new ordinary shares at a price of R67.20 per share, to raise approximately R48.27 million at current conversion rates.
Jubilee’s board is also in advanced talks with a major financial institution to secure the debt element of the project financing required to bring its two platinum surface projects into operation.
The size of the rand-based debt funding equates to R255 million before financing costs, while the project capital required for the platinum surface projects is estimated at R271 million.
This capital estimation is based on a rand-dollar exchange rate of approximately 12.2. The working capital required to bring the platinum surface projects to operation and to achieve positive earnings is estimated at R75 million.
The secured placing allows Jubilee to remain on-track with the execution of the platinum surface projects as the combined funds from the placing together with the debt funding and the sale of the non-platinum operational assets, will address funding requirements for the design, construction, commissioning and working capital during the ramp-up phase of the platinum surface projects.
The platinum surface projects target to process 80 000 tpm of platinum containing surface material delivering an estimated production of 42 000 ozpa of platinum-group metals (PGMs) in concentrate. The platinum surface projects are expected to achieve an IRR in excess of 30% net of taxation.
Engineering design and specification is being fast tracked for timely project construction commencement, with platinum production expected in first half of 2016.
“We are pleased to be able to have secured funding for the continued simultaneous execution of the surface platinum projects.
“The funding package has placed us on a sound footing to transform Jubilee into a significant PGM producing company. We continue with our mission to acquire similar projects and enlarge the company’s production capacity using our knowledge and experience to the best interest of our shareholders,” says Jubilee Platinum chief executive Leon Coetzer.
Exercise of warrant shares
Meanwhile, Jubillee further announces that 5.8 million warrants (at an exercise price of R39.73) and 10.55 million warrants (at an exercise price of R63.84) in the issued share capital of Jubilee were also exercised resulting in a cash value of R9.0 million.
Settlement share placing
The company will also issue as a final debt settlement on behalf of its subsidiary Jubilee Smelting and Refining (JSR), in lieu of services provided towards the development of the surface projects, a total of 1.26 million new ordinary shares at a price of R79.06 per ordinary share.
The placing, warrant and settlement shares are expected to be admitted to trading on AIM and to be listed on the AltX of the JSE on 12 August 2015.