| Wed 2 Apr 2008, 8:00 | | JBL - Jubilee Platinum Plc - Announcement |
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JBL
JUJLP
JBL - Jubilee Platinum Plc - Announcement
Jubilee Platinum Plc
Registration number: 4459850
AIM: JLP
JSE: JBL
ISIN: GB0031852162
Jubilee Platinum Plc
("Jubilee" or "the Company")
2 April 2008
Jubilee Receives Section 11 Approval to Purchase Additional Shares in New Plats
(Tjate) (Pty) Limited ("NewPlats")
Jubilee Platinum, the AIM listed mining exploration and development Company with
a focus on platinum group metals, is pleased to announce that it has received
approval to increase its stake in the Tjate project to 58.53%.
This will give the Company a significantly increased stake in the project, which
has a converted prospecting right, comprising of three contiguous farms totaling
5,143 hectares in the eastern Bushveld. Jubilee has also secured approval to
enable it to increase this holding to 63.0%.
Highlights:
* Jubilee/Tjate Platinum Corporation (Pty) Ltd ("Tjate") receive Department
of Minerals and Energy (DME) written consent under Section 11 of the
Mineral and Petroleum Resources Development Act (MPRDA) for Jubilee to
purchase Preference A shares in NewPlats.
* This purchase increases Jubilee`s beneficial interest in the Tjate Project
from 48.72% to 58.53%.
* The consideration for this purchase is by way of issue of 5 507 493 Jubilee
ordinary shares, the issuance of which is subject to South African Reserve
Bank (SARB) Approval.
* The approval furthermore allows Jubilee to increase its interest in Tjate
to 63.0% through purchase of NewPlats shares from those NewPlats
shareholders, who elected to reserve the right to convert their equity in
NewPlats directly into Jubilee shares. This issuance of Jubilee shares will
also be subject to SARB approval.
On 20 March 2008, the DME consented to an application in its entirety, by Tjate
- the prospecting right holder, under Section 11 of MPRDA, for Jubilee to
purchase Preference A shares in NewPlats, (pursuant to the Preference Share
Subscription and Sale Agreement ("Agreement") announced 17 July 2007.
The Preference A shares represent 35.04% interest in NewPlats. This purchase of
interest from NewPlats shareholders, who also are shareholders of Tjate Platinum
Corporation (Pty) Limited (Tjate), increases Jubilee`s direct and indirect
interest in the Tjate project to 58.53%. The consideration for this purchase is
by way of issue to NewPlats Preference A shareholders of 5 507 493 ordinary
shares in Jubilee at a price of ZAR8.91 or 63 pence per ordinary share; a price
based on the weighted average price agreed at the time the Agreement was signed.
This issuance of ordinary shares in Jubilee is subject to SARB approval.
The Section 11 approval furthermore allows Jubilee to purchase the balance of
interest in NewPlats to take its beneficial and economic interest in Tjate from
58.53% to 63.0%. This sale will also be subject to SARB approval.
In being granted the Section 11 approval, Jubilee has given an undertaking to
the DME to provide further ordinary shares in Jubilee to NewPlats, against
certain criteria being met including commercial production. This undertaking
will enable Jubilee to satisfy the economic empowerment requirements of the
MPRDA and in keeping to the spirit and intent of the Mining Charter.
Colin Bird CEO of Jubilee said, "This Section 11 approval increases our position
significantly in the Tjate project and in turn provides Tjate with a significant
public company platform for future financing. We look forward to working with
NewPlats and our other partners in Tjate to accelerate the project towards
completion of its feasibility study."
Notes to editors:
With the Section 11 approval in its entirety and after SARB approval, Jubilee
will own directly and indirectly 58.53% in the Tjate Project and will be allowed
to increase its stake to 63.0%. The Tjate project, which has a converted
prospecting right, comprises of three contiguous farms totaling 5,143 hectares
in the eastern Bushveld: namely Dsjate, Fernkloof and Quartz Hill. The farms are
located adjacent to and down dip of Impala Platinum`s operating Marula platinum
group metal (PGM) mine and of Anglo Platinum`s developing Twickenham PGM
project. Jubilee has embarked on a bankable feasibility study following the
completion of a positive scoping study of the project (announced 6 June 2007).
For further information please contact:
Colin Bird Nick Rome/Michael Kinirons
Jubilee Platinum plc Bishopsgate Communications Ltd
Tel +44 (0) 20 7584 2155 Tel +44 (0) 20 7562 3350
Andrew Sarosi
Jubilee Platinum plc
Tel +44 (0) 1752 221937
Date: 02/04/2008 08:00:01 Produced by the JSE SENS Department.
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