| Tue 15 Mar 2011, 9:00 | | JBL - Jubilee - Jubilee secures GBP15 million Standby Equity Distribution |
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JBL
JUJLP
JBL - Jubilee - Jubilee secures GBP15 million Standby Equity Distribution
Agreement
Jubilee Platinum PLC
AIM: JLP
JSE: JBL
Registration number: 4459850
ISIN GB0031852162
("Jubilee" or the "Company")
Jubilee Platinum plc
("Jubilee" or "the Company")
Jubilee secures GBP15 million Standby Equity Distribution Agreement ("SEDA")
The SEDA will allow Jubilee to seek acquisition opportunities in near term
mining projects
Highlights
- Jubilee secures acquisition funding source.
- GBP15 million standby facility secured with fund drawdown and equity
distribution controlled by the board.
- This facility enables Jubilee to act promptly on opportunities to acquire
chrome and platinum properties strategically suitable for ConRoast.
- Current cash in bank of GBP8 million remains committed to Jubilee`s expanding
smelting and on-going project operations.
Jubilee announces that it has entered into a GBP15 million SEDA with YA Global
Master SPV Ltd, an investment fund managed by Yorkville Advisors LLC, further
details of which are set out below.
The funds available under the SEDA will be used by Jubilee to enter into joint
ventures with or to acquire small chrome and platinum mines. Such joint ventures
or acquisitions complement the ConRoast business by securing concentrate or
concentrate purchase.
Commenting on the SEDA agreement,Leon Coetzer,Chief
Executive Officer of Jubilee said:
"We are delighted to be announcing this standby arrangement for funds of up to
GBP15 million. This will enable Jubilee to take advantage quickly of
identified opportunities to acquire small to medium platinum-chrome mines
consistent with the ConRoast growth strategy.
"This facility means Jubilee can acquire suitable targets without recourse to
current cash, which is allocated for our on-going Middelburg smelter expansion
and project development plans."
SEDA Facility
Subject to its terms, the GBP15 million SEDA facility can be drawn upon at the
discretion of the Company. Under the terms of the agreement, Jubilee may draw
down on funds over a period of up to two years by way of the issue of New
Ordinary Jubilee Shares for cash. The Ordinary Shares issued by the Company will
be at a 4% discount to the prevailing market price during the 10 day pricing
period of a draw down and also subject to the pricing rules of the JSE Limited.
The Company may also set a minimum price for each draw down. The maximum advance
that may be requested is 200% of the average daily trading volume of Ordinary
Jubilee Shares multiplied by the volume weighted average price of such shares
for each of the 10 trading days prior to the draw down request or GBP2,000,000,
whichever is lower. The facility may only be drawn down upon once every 10 days.
Rationale
Numerous small-scale near-term, mining opportunities are being presented to
Jubilee due to its ability to process platinum concentrates containing high
chrome values. These opportunities offer Jubilee the potential of processing its
own platinum concentrates through its Middelburg smelting facilities in the
period before its Tjate Platinum project comes into production. The ability to
process its own platinum concentrates through the Middelburg facility
significantly enhances Jubilee`s cashflow generating ability.
The Company would like to clarify that this announcement is unrelated to the
cautionary announcement dated 14 March 2011.
Contacts
Leon Coetzer/Colin Bird
Jubilee Platinum plc
Tel +27 (0)11 465 1913/ +44 (0) 20 7584 2155
Andrew Sarosi
Jubilee Platinum plc
Tel +44 (0) 1752 221937
Matthew Robinson/Rose Herbert
finnCap Ltd
Tel +44 (0) 20 7600 1658
Leonard Eiser /Sharon Owens
Sasfin Capital
Tel +27 (0) 11 809 7500
Michael Kinirons/Nick Rome
Bishopsgate Communications Ltd
Tel +44 (0) 20 7562 3350
London
15 March 2011
SPONSOR
SASFIN CAPITAL (A DIVISION OF SASFIN BANK LIMITED)
Date: 15/03/2011 09:00:01 Produced by the JSE SENS Department.
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