Jubilee Metals Regulatory News (JLP)

12 Dec 2006 08:00

Jubilee Platinum PLC12 December 2006 12 December 2006 Jubilee Platinum Plc ("Jubilee" or "the Company") Jubilee Increases its Equity Holding to 48% in Tjate Project Jubilee is pleased to announce that it has entered into a Sale of SharesAgreement ("Agreement") with New Plats (Tjate) (Proprietary) Limited ("New Plats") to purchase its shareholding in Tjate Platinum Corporation (Proprietary)Limited ("Tjate"). Highlights: • Jubilee purchases additional 13% stake in Tjate for ZAR65 million by way of issuance of Jubilee shares • Jubilee's stake in Tjate increases to 48% • Jubilee has option to purchase further 15% in Tjate for ZAR75 million for Jubilee shares pending satisfaction of certain conditions precedent Colin Bird CEO of Jubilee said "In taking this step, we are delighted to haveadvanced our investment position to 48% in the Tjate project, which is one ofSouth Africa's largest undeveloped blocks of PGMs (platinum group metals)currently under exploration. Jubilee looks forward to working with its Tjatepartner to advance the project towards development." Salient Terms of the Agreement The initial purchase is for 13% of New Plats's equity in Tjate for a purchaseprice of ZAR65 million to be discharged by the issuance of the equivalent valueof Jubilee ordinary shares listed on the Johannesburg Stock Exchange ("JSE") ata volume weighted average trading price on all markets in the 30 business dayspreceding the signature date of the Agreement. This purchase is subject to SouthAfrican Reserve Bank approval. This initial purchase in full, together with its original 25% equity and earn-inright to a further 10%, will result in Jubilee holding 48% of Tjate. Pre-emptive rights exist and should other shareholders in Tjate exercise theirrights, Jubilee's initial purchase will reduce as will the purchase price inproportion. The Agreement grants Jubilee an exclusive and irrevocable Call option, and NewPlats an irrevocable Put option on Jubilee, to purchase in a single tranche afurther 15% of New Plats's equity in Tjate for a price of ZAR75 million. Thepurchase price will be discharged by the issuance of the equivalent value ofJubilee ordinary shares listed on the JSE at a volume weighted average tradingprice on all markets in the 30 business days preceding the signature date of theAgreement. The Call option is exercisable by Jubilee at any stage for a period of threeyears, from the expiry of the 45-day pre-emptive rights period as reflected inthe shareholders agreement governing Tjate. The Put option is exercisable by NewPlats at any stage after 1 February 2007 for a period of two years and a further240 days thereafter. The option sale of shares is subject to South AfricanReserve Bank and Department of Minerals and Energy approval. Should the other shareholders in Tjate exercise their pre-emptive rights,Jubilee's Call option will be reduced as will the purchase price in proportion. To the extent that Jubilee makes an offer to acquire any other shares in Tjatefrom any other shareholders, New Plats agrees to waive all of its pre-emptiverights. Notes to editors: Jubilee has a 25% interest in Black Economic Empowered Tjate PlatinumCorporation (Pty) Ltd with a right to subscribe for a further 10% interest onexpenditure of ZAR14 million towards exploration and a feasibility study. The Tjate project, which has a converted new order prospecting right, comprisesof three contiguous farms, totaling 5,143 hectares in the eastern Bushveld:namely Dsjate, Fernkloof and Quartz Hill. The farms are down dip of Implats'operating Marula PGM mine and Anglo Platinum's developing Twickenham PGMproject. Jubilee has recently completed the first phase drilling of sevenboreholes on the Dsjate farm. All the holes, as previously reported, intersectedat targeted depths the Merensky reef and, where drilled deeper, the UG2 reefs,which are the two main PGM-bearing horizons in the Bushveld. For further information please contact: Colin Bird Cathy Malins / Annabel Leather Jubilee Platinum plc Parkgreen Communications LtdTel +44 (0) 20 7584 2155 Tel +44 (0) 20 7493 3713 Andrew SarosiJubilee Platinum plcTel +44 (0) 1752 221937 This information is provided by RNS The company news service from the London Stock Exchange