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JBL
JUJLP
JBL - Jubilee Platinum Plc - Jubilee and Sylvania enter into binding Framework
Agreement
Jubilee Platinum Plc ("Jubilee")
AIM: JLP JSE: JBL
Registration number: 4459850
ISIN GB0031852162
Sylvania Resources Plc ("Sylvania")
ASX:SLV AIM:SLV
Registration number 091 415 968
ISIN AU000000SLV8
Joint Announcement
Jubilee and Sylvania enter into binding Framework Agreement
Jubilee and Sylvania are pleased to announce that they have entered into a
Framework Agreement whereby the basis of joint activities under the previously
announced strategic partnership between the parties has been agreed.
Under the terms of the Framework Agreement the parties have agreed to
incorporate a company to undertake smelting and refining activities using
Jubilee`s ConRoast technology (the `Smelting Company`). The ownership structure
of the Smelting Company will be split 70% Jubilee and 30% Sylvania.
In addition, the parties have agreed to incorporate a second company to
undertake the processing of future platinum tailings opportunities (the
`Tailings Processing Company`). The ownership structure of the Tailings
Processing Company will be Sylvania 50% and Jubilee 50%. Sylvania`s current
tailings and Northern limb operations will not form part of the Tailings
Processing Company arrangement.
The two new companies to be formed pursuant to the Framework Agreement will
allow for the processing and treatment of considerable low grade and high chrome
concentrate resources on the Bushveld which have previously been deemed
uneconomic.
Highlights
- Jubilee and Sylvania join forces to offer a total processing capability for
the processing and refining of low grade and high chrome concentrate PGM
tailings or hard rock resources
- Partnership focused on worlds largest PGM producing region: Bushveld complex,
South Africa
- Two new companies to be incorporated to undertake
i) smelting and refining activities using ConRoast technology; and
ii) the processing of future PGM tailings opportunities
- Sylvania commits to make available to the Smelting Company all uncommitted
concentrate from existing tailings operations and Northern Limb projects to take
advantage of its stated mines to metal strategy
- ConRoast preferred as exclusive smelting option for Sylvania projects
- The Smelting Company will commit to install up to three 10 MW ConRoast
furnaces with centralized refining facility
- Legal Agreements enacting the Framework Agreement to be concluded within 3
months
Metallurgical testing of Sylvania`s tailings and in-situ PGM resources by
Jubilee and Braemore has already been completed and deemed that recovery through
ConRoast is economic. Sylvania is currently undertaking an exploration programme
at its Northern Limb licenses acquired in 2009. A measured resource is expected
within the first half of 2010 and the results will form the final component to
the decision as to develop the smelting facility. Following a positive
development agreement it is expected that the Smelting operation will be
commissioned within three years.
The parties have agreed under the Framework Agreement to execute the transaction
agreements required to give effect to the strategic partnership including
shareholders agreements for each of the companies, management agreements for
each of the companies, technology agreements and intercompany off-take
agreements. It is anticipated that this collaboration process will be concluded
within 3 months such that the Smelter Company and the Tailings Processing
Company will be operational at that point.
It is intended that Jubilee will conclude a licensing agreement with the
Smelting Company in terms of which Jubilee will provide an irrevocable licence
of the ConRoast Technology to the Smelting Company.
It is intended that Sylvania will conclude a technology transfer agreement with
the Tailings Processing Company in terms of which Sylvania will provide its
knowhow and other technology in relation to tailings treatment to the Tailings
Processing Company.
The parties intend that when the future operations of Sylvania require, the
Smelting Company will fund and procure the construction of three ConRoast
Technology supporting furnaces, specifically designed for the roasting and
smelting of Sylvania procured PGM concentrate. Each furnace is intended to have
a capacity of up to a nominal 10MW rating and shall have associated roasting,
infrastructure and refining equipment.
Sylvania will conclude an off-take agreement with the Smelting Company in terms
of which Sylvania will make available to the Smelting Company all of its
uncommitted PGM concentrate. The Tailings Processing Company will also enter
into an off-take agreement with the Smelting Company for all of its PGM
concentrate.
Jubilee will be appointed as manager of the Smelting Company in return for a
management fee related its profitability. The parties will be jointly
responsible for the management of the Tailings Processing Company.
Colin Bird CEO of Jubilee said "These new companies combine the joint operating
capability of Jubilee and Sylvania to take PGM containing dump material into
metal. The ongoing arrangement provides the platinum industry with a formidable
total capability solution for the processing of PGM tailings and high chrome
concentrates."
Terry McConnachie MD of Sylvania said "The formation of the joint venture
companies offers Jubilee and Sylvania the benefit of fully exploiting the
synergies offered by a mine to metal strategy free of the traditional
constraints imposed on high chrome, or relatively low grade concentrates. This
in turn is a significant step in unlocking the value of the assets acquired
under the takeovers of Great Australian Resources and SA Metals last year.
Any future platinum tailings processing opportunities will be jointly exploited
combining Sylvania`s significant tailings treatment experience and Jubilee`s
smelter technology and experience. This allows the combined entities to tackle
new tailings projects that are not currently exploitable by either Sylvania or
Jubilee individually."
For further information please contact:
04 February 2010
South Africa
Jubilee Platinum Sylvania Resources
Colin Bird CEO Terence McConnachie
Jubilee Platinum plc Managing Director
Tel +27 (011) 253 3280 Tel +27 11 673 1171
Leon Coetzer Louis Carroll
Braemore Platinum (Pty) Ltd Finance Director/Joint Company
Tel +27 (0) 83 455 7749 Secretary
Tel +27 11 673 1171
Brian Christie/Leonard Eiser
Sasfin Capital
Tel +27 (0) 11 809 7500
United Kingdom
Andrew Sarosi Richard Brown/ Richard Greenfield
Jubilee Platinum plc Ambrian Partners Limited,
Tel +44 (0) 1752 221937 Nominated Adviser
Tel +44 20 7634 4700
Suzanne Johnson-Walsh Laurence Read/Beth Harris
Bishopsgate Communications Ltd Threadneedle Communications
Tel +44 (0) 20 7562 3350 Public Relations Adviser
Tel +44 20 7653 9855
Matthew Robinson/ Ed
Frisby/Stephen Norcross
FinnCap
Tel +44 (0) 20 7600 1658
Australia
Richard Rossiter
Non Executive Chairman
Tel +61 41 868 8338
Grant Button
Director/Joint Company Secretary
Tel +61 8 922 64777
Date: 04/02/2010 09:00:02 Produced by the JSE SENS Department.
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