Jubilee Metals Regulatory News (JLP)

6 Apr 2006 11:50

Jubilee Platinum PLC06 April 2006 JOINT NEWS RELEASE - FOR IMMEDIATE RELEASE 6 April 2006 Jubilee Platinum Plc AIM: JLP Impala Platinum Holdings Limited JSE: IMP LSE: IPLA ADR: IMPUY Jubilee Platinum Plc ("Jubilee" or "the Company") and Impala Platinum Holdings Limited ("Implats" or "the Company") Jubilee and Implats Agree Joint Venture on Ambodilafa Project, Madagascar Jubilee today announced that it has entered into an option agreement withImplats with regards to its prospective Ambodilafa project in Madagascar. Theproject has the potential to host significant Ni-Cu-PGE mineralisation. Highlights • Jubilee, through its Madagascan subsidiary MRM Sarl ("MRM"), andImplats agree to an option agreement on MRM's Ambodilafa project ("Ambodilafa")in Madagascar • Implats has the right to earn an undivided 51% interest in theAmbodilafa property by funding in four phases a total aggregate of US$5,000,000for exploration, though expenditure can be accelerated if required • MRM retains a 49% equity stake if Jubilee elects to continue fundingAmbodilafa to feasibility stage and through to mine development • MRM dilutes to 35% of a new mine without further funding from Jubileeshareholders if Jubilee elects not to continue funding • Jubilee will remain the operator of Ambodilafa until incorporation ofa Joint Venture, for which the Company will receive a 5% management fee • Ambodilafa is an extensive 20 kilometres long by 4 kilometres widemafic-ultramafic system, which could host significant Ni-Cu-PGE (platinum groupelement) mineralisation • Jubilee has established that a drilling programme carried out in 1969was on the fringes of the main system and intends to focus activities on theapparent system defined by airborne geophysics Colin Bird, Chief Executive Officer of Jubilee, said: "In concluding thisagreement, we looked at several options for the development of Ambodilafa andImplats offered the better route for shareholder value, considering its size,mission and modus-operandi in working with junior partners. With our highlyprospective exploration projects in Madagascar and South Africa, risk sharing inwhat could be our largest project makes good sense. We look forward to workingwith Implats to unlock the value we believe is contained in the project." Les Paton, Executive Director of Impala said, "We recognise the Ni-Cu-PGEpotential of the Ambodilafa Project area and we look forward to working withJubilee on this project." About the Joint Venture Agreement: Jubilee and MRM grant Implats the sole and exclusive right and option to acquireincrementally an undivided 51% interest in the Ambodilafa property by funding infour phases a total aggregate of US$5,000,000 for exploration. Implats mayaccelerate expenditure if it elects. In the event of termination of the agreement subsequent to the first fundingphase but prior to the second funding phase, Implats's accrued interestprevailing will be converted to a 1% Net Smelter Returns ("NSR") royalty. Implats will retain its progressively accrued interest subsequent to the secondfunding phase and should it elect to terminate the agreement before the fourthfunding phase, Jubilee may buy back such interest on the basis of provenhistorical expenditure incurred. On Implats expending US$5,000,000, the parties will automatically incorporate ajoint venture ("JV") company for the further development of the property,including feasibility studies and mine development. At JV formation, Implatswill own 51% of the equity and MRM 49%. Jubilee remains the operator until incorporation of a JV, for which it receivesa 5% management fee. Jubilee may elect to part fund or not fund the feasibility studies, in whichcase MRM will dilute pro rata to not less than 35% interest, which cannot bediluted. On decision to mine, MRM may elect for its 35% share to be carried by Implats toproduction and such carried funding will be recovered from part of the operatingcash flow that would be attributable to MRM. MRM Sarl, Jubilee's 85% owned Madagascan subsidiary, is the legal owner of theAmbodilafa property. Jubilee has the legal right to buy back 10% of the localpartner's 15% interest in MRM for US$100,000 per percentage point. This agreement is conditional on both parties evidencing to the satisfaction ofthe other that all licences, permissions and regulatory approvals are in place. About Ambodilafa: Jubilee's large 4 kilometres wide by 20 kilometres long Ambodilafa concession ispart of an extensive mafic-ultramafic system. The property is located some 160kilometres southeast of the Madagascan capital Antananarivo. Previous regional reconnaissance drilling by others in the area, in 1969,included an intersection of 93 metres of disseminated sulphides, containingpyrrhotite, pentlandite (nickel ore mineral) and chalcopyrite (copper oremineral). The intersection included a 1.5 metre intercept assaying 2.2% nickeland 0.35% copper. The drill cores were not analysed for their PGE (platinumgroup elements) content, but later stream sediment sampling in 1990 definedseveral drainage catchments in the vicinity of the area drilled, which showedanomalous platinum and palladium values. This earlier drilling, which followed identified geochemical anomalies, wascarried out generally to the west of a significant electro-magnetic geophysicalanomaly identified by others in 1969 and subsequently confirmed by the recentlyannounced results (8 December 2005) of the helicopter-borne VersatileTime-Domain Electromagnetics geophysical survey over the same area. For further information, please contact: Colin Bird Cathy Malins / Annabel LeatherJubilee Platinum plc Parkgreen Communications LtdTel +44 (0) 20 7584 2155 Tel +44 (0) 20 7493 3713http://www.jubileeplatinum.com Les Paton Bob GilmourImplats ImplatsExecutive Director Group Investor Relations ManagerTel +27 11 481 3918/36 Tel + 27 11 481 3913/2 This information is provided by RNS The company news service from the London Stock Exchange