| Tue 5 Apr 2011, 8:00 | | JBL - Jubilee Platinum Plc - Cautionary announcement update |
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JBL
JUJLP
JBL - Jubilee Platinum Plc - Cautionary announcement update
JUBILEE PLATINUM PLC
AIM: JLP
JSE: JBL
Registration number: 4459850
ISIN: GB0031852162
("Jubilee" or "the Company")
MINING OPPORTUNITY IDENTIFIED WITH NEAR-SURFACE CHROME ORE
BODIES CONTAINING PLATINUM GROUP ELEMENTS
CAUTIONARY ANNOUNCEMENT UPDATE
The Board of Jubilee, the AIM traded and JSE Limited quoted mine to metal
specialist, is pleased to announce that the Company has executed a binding
Memorandum of Understanding ("MOU") for the acquisition of an operating company
(the "target company") that treats near-surface chrome ore bodies containing
platinum group elements ("PGE") and an associate company, which holds certain
mining and prospecting rights. The target company`s operation in the western
bushveld is approximately 200 kilometres west of Jubilee`s Middelburg smelting
faciltity. The implementation of the transaction contemplated by the MOU is
subject to the fulfilment of conditions precedent. It is anticipated that the
formal agreements will be concluded by the Q2 this year.
Leon Coetzer,Chief Executive Officer of Jubilee said: "This MOU falls in line
with Jubilee`s strategy of acquiring near-term platinum mining opportunities to
produce platinum concentrate for our Middelburg processing facility. Processing
of our own platinum concentrates significantly enhances the business model for
Jubilee."
The target company owns and operates a chrome ore beneficiation plant, which
produces chromite concentrate. The plant currently treats chrome ore from the
target company`s small open pit operation on MG (Middle Group) chromitite reefs
and from third party purchases. The target company has an estimated 500,000 tons
surface stockpile of PGE-rich mined chrome ore tailings generated from its
previous beneficiation operations and, which it is believed, could contain
potentially in excess of 40,000 ounces of PGEs. The Company notes that these
estimates of tonnage and PGE ounces are not a resource statement. The target
company`s property also includes an Upper Group -UG1- PGE-bearing chromitite
reef, which outcrops on the property and, which limited drilling suggests, has
continuity down dip. This UG1 reef could be mined immediately by open pit.
The beneficiation plant is capable of processing 70,000 tonnes per month of
chrome ore, producing a chromite concentrate for the chrome industry, while
continuing to deposit PGE-bearing tailings onto the current surface stockpile.
It is envisaged that a PGE concentrator plant, to recover the PGEs from current
plant tailings and from the stockpiled mined chrome ore tailings can be
constructed within 24 months to supply PGE concentrate to Jubilee`s Middelburg
smelting facility.
The Company advises that the Cautionary Announcement dated 14 March 2011 was
released in accordance with Rule 3.9 of the JSE Limited. Such announcements are
intended to caution investors about dealing in Jubilee shares when the company
is in a price-sensitive situation. The cautionary was issued due to these
ongoing negotiations.
The Company will continue to issue cautionary announcements, as necessary, in
compliance with JSE Limited requirements, when the Company is in a price-
sensitive situation, such as acquisition, disposal or merger discussions with
another party.
Contacts
Colin Bird/Leon Coetzer
Jubilee Platinum plc
Tel +44 (0) 20 7584 2155 / Tel +27 (0)11 465 1913
Andrew Sarosi
Jubilee Platinum plc
Tel +44 (0) 1752 221937
Matthew Robinson/Ben Thompson - Corporate Finance
Joanna Weaving - Corporate Broking
finnCap Ltd
Tel +44 (0) 20 7600 1658
Michael Kinirons/Nick Rome
Bishopsgate Communications Ltd
Tel +44 (0) 20 7562 3350
5 April 2011
Sponsor
Sasfin Capital
(A division of Sasfin Bank Limited)
Date: 05/04/2011 08:00:01 Produced by the JSE SENS Department.
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