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LONDON (Alliance News) - Jubilee Platinum PLC Wednesday said it has secured funding to design and engineer its chrome and platinum group metals surface processing operations after conducting a placing.
"The purpose of the funding is to support, inter alia, the conclusion of the detail design and engineering study program to allow the construction of the surface platinum group metals and chrome beneficiation processing plants at both Hernic Ferro Chrome Proprietary Ltd and ASA Metals," said the company in a statement.
Jubilee said the funding has been secured after the company issued company shares for cash, as well as agreeing settlements with selected creditors in its subsidiaries to release internal funding, said the company in a statement.
Jubilee issued just under 50 million shares at 1.50 pence per share to raise GBP750,000, with Non-Executive Chairman Colin Bird investing a further GBP20,000 to purchase 1.3 million shares, bringing his total stake in the company to 1.2%.
The company will issue a further 24.7 million shares at the same price on behalf of its subsidiaries Braemore Resources Ltd, RST Special Metals Proprietary Ltd, and Jubilee Smelting and Refining Proprietary Ltd, in lieu of debt totalling GBP370,000.
"The executed fund raising has been limited to target the funding of the design and engineering execution studies while the Company engages with financial institutions to maximise the exposure to project funding supplemented by the income from the sale of non-core exploration assets to minimise expected shareholder dilution," said Chief Executive Leon Coetzer.
Jubilee shares were down 5.5% to 1.53 pence per share on Wednesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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