LONDON (Alliance News) - Jubilee Platinum PLC said Tuesday it has completed full funding for its two surface-platinum processing projects, of around USD18.6 million, after having agreed secured senior debt and unsecured debt, and undertaking an equity placing.
The miner said it will now be able to execute the two projects simultaneously, targeting the processing of 80,000 tonnes per month of surface material, while still being able to "pursue the acquisition or securing of further surface or shallow platinum bearing opportunities".
Jubilee said the funding comprised of a senior secured debt to a maximum of USD10.0 million, unsecured debt to a maximum of USD5.0 million, as well as a share placing which raised around USD3.6 million.
It said the senior secured debt was arranged by RiverFort Capital Ltd, and was structured to link the debt repayment obligation with the commissioning and ramp-up of the projects.
The unsecured debt will be staggered over two equal tranches to fall in line with the commissioning and ramp up of the second project, with the final tranche scheduled for February 2017.
Jubilee also said it placed 89.3 million shares at a price of 2.80 pence per share. It said the company's total issued share capital will comprise of 989 million shares, following admission of the shares.
Shares in Jubilee were down 5.6% at 2.93 pence on Tuesday afternoon.
Later Tuesday, fellow London-listed Onzima Ventures PLC said it participated in the placing, subscribing to 4.7 million of the shares on offer for a total of GBP132,000.
"We are pleased to have taken part in this fundraising at what we consider is an attractive price," said Onzima.
Onzima shares were trading down 3% to 0.800 pence per share on Tuesday afternoon.
The project funding structure combines both debt and equity, recognizing the future profitability of the projects while securing funding to pursue further such surface or near surface platinum opportunities. The successful funding demonstrates the confidence of investors in Jubilee's robust business model," said Chief Executive Leon Coetzer.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland. Updated by Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Jubilee Metals (JLP)