| Thu 19 Jun 2008, 9:31 | | JBL - Jubilee Receives Final Approval To Increase Direct And Indirect |
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JBL
JUJLP
JBL - Jubilee Receives Final Approval To Increase Direct And Indirect
Beneficial Interest In The Tjate Project To 63%
Jubilee Platinum Plc
Registration number: 4459850
ISIN: GB0031852162
("Jubilee" or "the Company")
AIM: JLP
JSE: JBL
JUBILEE RECEIVES FINAL APPROVAL TO INCREASE DIRECT AND INDIRECT BENEFICIAL
INTEREST IN THE TJATE PROJECT TO 63%.
The Board of Jubilee, the JSE listed and AIM quoted mining exploration and
development company, is pleased to announce that the South African Reserve
Bank ("SARB") has given its approval for Jubilee to purchase all 5 300 of
the `A` Preference Shares ("New Plats `A` Preference Shares") with par value
ZAR0.01 in New Plats (Tjate) Proprietary Limited ("New Plats"), pursuant to
the Preference Share Subscription and Sale Agreement and an Addendum to the
Agreement dated 13 May 2008 (the "Agreements"). This approval, together with
the Section 11 approval, previously announced 2 April 2008, completes all
the regulatory approvals and conditions precedent necessary for the
Agreements.
Highlights:
- Jubilee receives final regulatory approval to purchase all of the New
Plats `A` Preference Shares.
- This purchase increases Jubilee`s beneficial interest in Tjate Platinum
Corporation (Pty) Ltd ("Tjate") from 48.72% to 63.00%.
Colin Bird CEO of Jubilee said, "In completing these Agreements, we have
increased our overall interest in the Tjate project to 63%. This transaction
enhances value for Jubilee shareholders and we look forward to working with
our various partners in Tjate to advance the project to completion of its
feasibility study."
Transaction Details:
The New Plats `A` Preference Shares confer on the holders the right to
receive all dividends or other distributions declared and/or paid by New
Plats to its shareholders in respect of 14.28% of the shares in Tjate held
by New Plats in the proportion in which they hold the shares.
The purchase consideration is ZAR71 400 000 by way of issue to New Plats
shareholders of 8,016,669 ordinary shares in Jubilee ("Jubilee ordinary
shares") at a price of ZAR8.91 or 63 pence per ordinary share.
The 8 016 669 Jubilee ordinary shares to be issued comprise 5 507 493
Jubilee ordinary shares under the Preference Share Subscription and Sale
Agreement, previously announced 25 March 2008 - and a further 2 509 176
Jubilee ordinary shares to be issued under the same terms to New Plats
minority shareholders under an Addendum Agreement dated 13 May 2008.
The conditions precedent for the Agreements were the approvals of the SARB
and the Department of Minerals and Energy, for which approval was given for
the latter as announced 2 April 2008.
The Agreements increases Jubilee`s interest in Tjate and provides it with a
significant public company platform for further financing.
The 8 016 669 Jubilee ordinary shares represent 7.09% of the enlarged issued
share capital of the Company.
The effective date of the Agreements is the 1st business day following the
fulfillment of the conditions precedent.
Application will be made to list the 8 016 669 Jubilee ordinary shares on
the JSE Limited and AIM.
New Plats, the subject of the Agreements and the vendor is incorporated in
South Africa with registration no. 1999/022850/07.
New Plats` main business and objective is platinum exploration and mining.
Financial Effects of the Share Issuance
The table below reflects the unaudited pro forma financial effects of the
above-mentioned proposed issue of new Jubilee ordinary shares. The pro forma
financial effects are based on the financial results for the period ended 31
December 2007, and have been prepared for illustrative purposes and in terms
of the Listing Requirements of the JSE. Therefore, they may not truly
reflect Jubilee`s financial position or results. The directors of Jubilee
are responsible for the preparation of the pro forma financial effects.
Before Pro forma Change (%)
the issue after the issue
0.59 (7.81)
Basic loss - 0.64
pence per share
0.64 0.59 (7.81)
Headline loss -
pence per share
30.38 32.51 7.01
Net asset value
("NAV") - pence
per share
24.66 22.85 (7.34)
Net tangible
asset value
("NTAV") - pence
per share
Notes:
i. The "before the issue" figures were based on Jubilee`s published
interim results for the six months period ended 31 December 2007.
ii. The "proforma after the issue" figures were based on the assumption
that the issue was effective on 1 July 2007 for basic loss per share and
headline loss per share.
iii. The "proforma after the issue" figures were based on the assumption
that the issue was effective 31 December 2007 for NAV and NTAV purposes.
iv. The weighted average number of shares used in the basic loss per share
and headline loss per share calculations were 90,378,278 before the issue
and 98,394,947 after the issue.
The number of shares outstanding used for NAV per share and NTAV per share
were 101,217,408 before the issue and 109,234,077 after the issue.
Notes to editors:
With the conclusion of this transaction, Jubilee directly and indirectly
owns 63.00% of Tjate. 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 at the project, which
was announced 6 June 2007.
For further information please contact:
Colin Bird Nick Rome/Michael Kinirons
Jubilee Platinum plc Bishopsgate Communications
Tel +44 (0) 20 7584 2155 Tel +44 (0) 20 7562 3350
Andrew Sarosi Jan Bosch/Paul Brett
Jubilee Platinum plc Investec Bank UK Limited
Tel +44 (0) 1752 221937 Tel +44 (0)20 7597 5000
19 June 2008
Date: 19/06/2008 09:31:01 Produced by the JSE SENS Department.
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