TIDMJLP
RNS Number : 9272Y
Jubilee Platinum PLC
09 March 2017
Registration number (4459850)
AltX share code: JBL
AIM share code: JLP
ISIN: GB0031852162
9 March 2017
Jubilee Platinum PLC
("Jubilee" or "Company")
Jubilee Executes Surface Tailings Transaction in Australia
Highlights
-- Jubilee has secured a copper surface tailings project with
RMA in Australia consistent with its stated surface processing
mission
-- Project production forecast of 12,000 tones (t) of copper
(Cu) at production cost AUD3,381/t Cu (USD2,569/t Cu) - Current Cu
price USD6,000/ t Cu
-- Near surface resources of 35,000t Cu in combination of JORC
compliant category and mineral inventory
-- Project Tenements comprise seven copper mining leases and two
Exploration licences in South Australia
-- Several of the Project Tenements targeted to be production
-ready within four months of the Transaction and able to produce
cash flow within 6 month of acquisition
-- Project Tenements offer significant Cu exploration upside potential
Mine-to-Metals specialist Jubilee Platinum plc (AIM: JLP, AltX:
JBL) is pleased to announce, that it has executed a binding and
exclusive Term Sheet to enter into a transaction ("the
Transaction") with Resilience Mining Australia Limited ("RMA") to
explore and develop ('the Project") RMA's Leigh Copper Mine
("LCCM") and other copper Mining Tenements ("the Project
Tenements), collectively owned or held by Leigh Copper Mine
Proprietary Limited (the "Project Company"), subject to conditions
precedent including satisfactory due diligence and/or to entering
into the transactional agreement ("the Proposed Transaction
Agreement" or "the Proposed Commercial Transaction").
Leon Coetzer, Chief Executive of Jubilee, said: "The execution
of this Term Sheet demonstrates Jubilee's ability to apply its
processing success and expertise in the recovery of platinum and
chrome to associated base metals such as copper. The expertise that
Jubilee holds in the processing of near surface materials and
tailings is easily transferred to minerals that fall within the PGM
and Base Metals grouping.
Having said this our first international project has been
carefully selected based on risk and reward by avoiding undue
execution and financing risk. This targeted copper project located
in South Australia demonstrates Jubilee's ability and focus to
drive its growth not only bound by country or specific metal but
also offers an exciting opportunity to build upon in Australia. We
have selected the copper arena on the back of the strong underlying
fundamentals for copper in the short and mid-term. We are looking
forward to executing this project and building on our established
Australian presence by seeking further such opportunities.
Discussions are progressing favourably to secure further
opportunities in both the platinum and associated base metals arena
and we remain confident to secure further such opportunities in the
short term."
Execution of Project
Preparatory Phase- Due diligence and execution of Proposed
Transaction Agreement
On entering into Proposed Transaction, the phased execution and
objectives of the Project are as follows:
Phase 1 - Reaching commercial production of first copper tonnes
from processing of existing surface material;
Phase 2- Target commercial production to 3,000 t Cu sales and
then to 9,000 t Cu sales, triggering respective target deferred
consideration payments.
Salient Terms of the Proposed Commercial Transaction
Under the terms and conditions of the Proposed Commercial
Transaction, the Company will have the right to acquire up to 100 %
of the issued shares in the Project Company for staged
considerations totalling AUD 4,500,000 by way of cash for the
acquisition of shares, AUD 2,500,000 in secured loans and AUD
1,000,000 subscription payments. The staged considerations are
linked to key project and copper production milestones.
On the Company electing to proceed following the exclusive due
diligence, which is estimated to conclude on or before the end of
April 2017, and the execution of the Proposed Commercial
Transaction, the Company will offer the Project Company a
3-year-term interest bearing securitised loan of AUD$500,000
towards accelerating the production time lines. First commercial
copper production is expected within 4 months of Project Commercial
Transaction.
On entering into the Proposed Transaction Jubilee will acquire
20% of the issued shares of the Project Company for a purchase
price of AUD 500,000.
After the 20% acquisition, the Company will subscribe for a
further 20% shareholding in the Project Company for a subscription
price of AUD1, 000,000 towards achieving commercial production
thereby giving Jubilee a 40% shareholding in the Project.
Following completion of Phase 1, Jubilee will have the option to
acquire a further 11% of the issued shares in the Project Company
for a purchase price of AUD 500,000 thereby increasing Jubilee's
total shareholding to 51% in the Project Company.
On Jubilee electing to commence with Phase 2 and objectives, the
Company will provide a further 3-year-term interest bearing
securitised loan to the Project Company of AUD2, 000,000 if the
parties deem further capital is required for the Project.
At any time after having acquired a 51% shareholding in the
Project Company and electing to proceed with Phase 2 objectives,
Jubilee will have the option of acquiring a further 29% of the
issued shares in the Project Company for AUD500, 000 taking its
shareholding in the Project Company to 80%.
On the Project achieving the target 3000 t Cu sold in terms of
Phase 3 Jubilee agrees to make a deferred consideration payment to
RMA of AUD1, 000,000 in cash.
On the Project achieving the target of 9,000 t Cu sold Jubilee
agrees to make a further deferred cash consideration payment to RMA
of AUD1, 000,000.
Jubilee shall offer to RMA an option, valid for a period of five
years from execution of the Term Sheet to convert its remaining
shareholding in the Project Company at Phase 4 in exchange for
Jubilee shares valued at AUD1, 000,000; priced at the minimum of
the Jubilee VWAP on the trading day immediately preceding the date
of last signature of this Term Sheet or the following thirty (30)
trading days' Jubilee VWAP.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Contacts
Jubilee Platinum plc
Colin Bird/Leon Coetzer
Tel +44 (0) 20 7584 2155 / Tel +27 (0) 11 465 1913
Andrew Sarosi
Tel +44 (0)1752 221937
JSE Sponsor
Sasfin Capital, a division of Sasfin Bank Limited
Sharon Owens
Tel +27 (0)11 809 7500
Nominated Adviser
SPARK Advisory Partners Limited
Sean Wyndham-Quin/Mark Brady
Tel: +44 (0)203 368 3555
Broker
Beaufort Securities Limited
Jon Belliss
Tel: +44 (0) 20 7382 8300
This information is provided by RNS
The company news service from the London Stock Exchange
END
UPDVVLFBDXFEBBF
(END) Dow Jones Newswires
March 09, 2017 02:00 ET (07:00 GMT)
Jubilee Metals (LSE:JLP)
Historical Stock Chart
From Apr 2024 to May 2024
Jubilee Metals (LSE:JLP)
Historical Stock Chart
From May 2023 to May 2024