Jubilee Metals Regulatory News (JLP)

AIM: JLP

JSE: JBL

Registration number: 4459850

ISIN GB0031852162

 30 June 2015

Jubilee Platinum PLC

("Jubilee" or the "Company")

Completion of tranche 2 of the acquisition of 100% of the beneficial interest in the DCM Platinum Recovery Project

Jubilee, the Mines-to-Metals company, announces the second of three tranche payments to acquire 100% of the Company's subsidiary, Pollux Investment Holdings Proprietary Limited ("Pollux") from Lipsoset Proprietary Limited ("the Seller") for a consideration of R4.0 million (GBP 0.207 million). Pollux holds the exclusive rights to beneficiate the platinum group metals ("PGM's") from the platinum containing chrome tailings at ASA Metals Pty Ltd ("DCM Platinum Project"). The phased acquisition of Pollux aligned with Jubilee's objective to minimize shareholder dilution in-line with the Company's value growth.

Highlights

· Increases in beneficial interest in the DCM Platinum Surface Project

· Received two funding offers for the completion of both Platinum Surface Projects

· Jubilee reviewing offers received for the acquisition of its non-core, non-platinum assets

Leon Coetzer CEO says: "Progress to our Mines-to-Metals strategy is accelerating with two offers received for financing of our surface tailings projects and firm cash offers for our non-core, non-platinum assets being reviewed.

"These share based payments are consistent with our "fast track" approach to significant platinum production, securing ownership and ensuring that remaining debt is extinguished.

"We look forward to bringing into operation the two platinum surface projects in 2016 targeting a production of 42,000 ounces of PGM's."

Jubilee has received a credit approved funding offer from a financial institution for the project funding of the two Platinum Surface Projects. The Company is currently reviewing the finance offers received and will conclude a decision shortly and update the market accordingly. The finance offered is to bring into operation our Platinum Surface projects. As announced previously on 26 May 2015, the Company is considering disposing of its non-core, non-platinum operational assets and has received cash offers for the acquisition of these assets which are under review by the Board. If executed, the funding from the sales of these assets will be applied towards the further acceleration and growth of the Platinum Surface projects.

On 3 November 2014, Jubilee announced that it will acquire a 25% interest in Pollux represented by 25 ordinary shares of ZAR1 each in the share capital of Pollux ("Sale Shares") for a total consideration of ZAR10.9 million (GBP0.564 million, using current conversion rates of ZAR19.28 to GBP1.00) from the Seller"). The consideration payable by the Company was to be satisfied by the issue of ordinary shares of 1 pence each in the Company ("Ordinary Shares") payable in three tranches. The tranche 1 consideration shares equivalent to the value of R5.3 million (GBP0.275 million at current conversion rates) were issued and notified to the market on 3 November 2014].

Further to the announcement made on 3 November 2014, the Company announces that the Tranche 2 Consideration of R4.0 million (GBP 0.207 million) is to be satisfied by the issue of 9,879,470 Ordinary Shares ("Tranche 2 Consideration Shares") issued at a price of 2.1 pence per share (ZAR 39.90 cents). The issue date of the Tranche 2 shares is defined as "the Second Date".

The Tranche 2 Sale Shares will be issued as fully paid and rank pari passu in all respects with the existing ordinary shares, including the right to receive all dividends and other distributions declared on or after the date on which they are issued. 

In addition, The Company will, on a share based payment basis, issue Ordinary Shares on behalf of its subsidiaries Braemore Resources Limited, RST Special Metals Proprietary Limited and Pollux, in lieu of debt for services provided ("Settlement Shares") towards the developmental and implementation of the platinum beneficiation strategy targeted at bringing into operation of the two Platinum Surface Processing projects estimated to process 80,000 tons per month of platinum containing surface material. A total of 16,971,461 new Ordinary Shares will be issued at an average price of 2.1 pence (ZAR 39.90 cents) to settle debt in an amount of GBP0.356million (ZAR 6.8 million). The issue price represents a 2.3% premium to the 30 day volume weighted average price of Jubilee as at 22 June 2015.

Application will be made for a total of 26,850,931 Ordinary Shares, representing the Tranche 2 Sale Shares (9,879,470) and the Settlement Shares (16,971,461), to be admitted to trading on AIM ("Admission") and to be listed on the AltX of the JSE Limited, which is expected to take place on or about 6 July 2015. Further announcements will be made in due course regarding the issue of the balance of the Tranche 3 Consideration Shares and any surplus shares to be issued.

Total voting rights

The Company's total issued capital after the issue of the Tranche 2 Sale Shares and the Settlement Shares will be 776,711,438 shares. As the Company does not hold any shares in Treasury, this figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company following Admission.

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

Nominated Adviser

SPARK Advisory Partners Limited

Sean Wyndham-Quin

Mark Brady

Tel: +44 (0)203 368 3555

Broker

Beaufort Securities Limited

Elliot Hance

Tel +44 (0) 20 7382 8416

JSE Sponsor

Sasfin Capital, a division of Sasfin Bank Limited Sharon Owens

Tel +27 (0) 11 809 7500