| Tue 4 Oct 2011, 8:00 | | JBL - Jubilee Platinum PLC - Receives offer on behalf of Tjate Platinum |
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JBL
JUJLP
JBL - Jubilee Platinum PLC - Receives offer on behalf of Tjate Platinum
Corporation for Quartzhill Farm
Jubilee Platinum PLC
AIM: JLP
JSE: JBL
Registration number: 4459850
ISIN GB0031852162
("Jubilee" or the "Company")
JUBILEE RECEIVES ON BEHALF OF TJATE PLATINUM CORPORATION, ZAR75M CASH OFFER TO
TJATE FOR TJATE`S QUARTZHILL FARM, A PORTION OF TJATE`S PLATINUM PROJECT
Jubilee, the AIM listed and JSE quoted mine to metals specialist, is pleased
to announce that it has received, on behalf of Tjate Platinum Corporation
(Pty) Ltd (Tjate), in which Jubilee is a shareholder, a formal offer ("Offer")
from a major mining company to acquire from Tjate for ZAR75 million (c.GBP5.95
million at current exchange rates) in cash, Tjate`s Quartzhill farm
("Quartzhill"), which is a portion of Tjate`s Platinum Project.
Highlights
- ZAR75 million cash offer received from a major miner for Tjate`s Quartzhill
farm;
- Jubilee will be recommending the Offer to Tjate Shareholders;
- Quartzhill has not been drilled and is not included in Tjate`s long-term
mining plans; and
- The Offer from a major minor endorses Jubilee`s original decision to earn-in
into Tjate.
The Tjate platinum project comprises three contiguous farms Dsjate, Fernkloof
and Quartzhill. Quartzhill lies to the northwest of Tjate`s projected first
mine area, which comprises only the Dsjate farm. The Tjate project is well
located relative to major mining companies.
The Company believes that this Offer, which the Offeror considers a strategic
acquisition, is acceptable because:
a) Quartzhill lies outside of the centre of gravity of Tjate`s projected first
mine area and therefore costs of mining this block could be potentially
prohibitive;
b) Quartzhill`s platinum reefs are deeper than those targeted on Dsjate; and
c) Quartzhill has not been drilled and therefore is not included either in
Tjate`s current SAMREC compliant resource estimate or in Tjate`s long-term
mining plan.
Other than the cash that Tjate would receive as a result of this Offer, the
effect of the transaction on the value of the assets of Jubilee is not
considered material.
The Offer, which Jubilee will be recommending to Tjate shareholders, is
subject to the approval of Tjate shareholders, the Department of Mineral
Resources (DMR), other regulatory bodies and the Offeror`s board, and is
subject further to the Offeror`s satisfactory due diligence.
Leon Coetzer CEO of Jubilee commented: "This Offer for Quartzhill recovers
value to Tjate shareholders, but does not detract from the Project`s mineable
value currently attributable to Jubilee, since Quartzhill has not been
drilled, is distant from the targeted shaft and so potentially not viable to
mine and therefore has been excluded from the current mine plan proposed in
Tjate`s recently submitted Mining Right application to the DMR."
Colin Bird Chairman of Jubilee said: "This cash offer gives Jubilee and all
the Tjate shareholders the potential to monetise, in the short term, a very
long-term and therefore non-core asset. Further, the Offer is a credibility
endorsement of the Company`s original decision to earn-in into Tjate."
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/Rose Herbert - corporate finance
Joanna Weaving - corporate broking
finnCap Ltd
Tel +44 (0) 20 7600 1658
Leonard Eiser/Sharon Owens
Sasfin Capital
Tel +27 (0) 11 809 7500
Nick Rome/Shabnam Bashir
Bishopsgate Communications Ltd
Tel +44 (0) 20 7562 3350
Shore Capital Stockbrokers Limited (Joint Broker)
Jerry Keen/ Edward Mansfield
Tel: +44 (0) 20 7 408 4090
4 October 2011
Sponsor: Sasfin Capital (A division of Sasfin Bank Limited)
Date: 04/10/2011 08:00:18 Produced by the JSE SENS Department.
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