TIDMJLP
RNS Number : 9336J
Jubilee Metals Group PLC
10 December 2018
Jubilee Metals Group PLC
Registration number (4459850)
AltX share code: JBL
AIM share code: JLP
ISIN: GB0031852162
("Jubilee" or "the Company")
Jubilee Platinum PLC
("Jubilee" or the "Company")
Jubilee acquires major Chrome Processing Operation
Highlights
-- Jubilee acquires major chrome operation currently processing
75 000 tonnes per month for a consideration of GBP8.6 million
-- Acquisition includes existing chrome and platinum containing
surface material in excess of 1,8 million tonnes
-- The acquisition provides Jubilee with a strategic position
within South Africa's PGM and chrome rich western bushveld
complex
-- This acquisition consolidates the chrome and PGM operations
at PlatCro and will significantly enhances future earnings from
PGMs and chrome
-- The current operation will more than double Jubilee's existing chrome processing capacity
-- The acquisition of additional 3(rd) party ore together with
enhanced processing efficiencies will further
-- Jubilee intends to increase processing efficiencies and
operational capacities and targeting further 3(rd) party material
in the area
Leon Coetzer, Chief Executive Officer says: "This transaction
repositions Jubilee in the chrome/platinum arena in South Africa.
Our integrated processing hub offers leading processing access to
the various independent mines free of the capital and regulatory
burden associated with own build.
The acquisition comes along with intellectual property rights
and rights to the existing surface material already exceeding 1, 8
million tonnes. With the integration of our PlatCro PGM project we
anticipate the processing of 65 000 tonnes of PGM rich materials
and 80 000 tonnes of chrome materials per month of processing
capacity.
The operation currently achieves annual earnings from chrome
alone in excess of USD5.5million before the contribution of PGMs.
We see significant opportunity to increase earnings by increased
through put and improved operational efficiencies.
I am particularly pleased that this acquisition has been enabled
by our current cash and project finance, with minimal dilution to
our shareholders."
Salient features of the Acquisition
Jubilee announces that it has executed a sale and purchase
agreement to acquire all of the chrome beneficiation assets
including plant, equipment, intellectual property and all rights to
the existing surface material estimated in excess of 1, 8 million
tonnes ("Assets") owned by PlatCro Minerals (Pty) Ltd ("PlatCro")
and associated companies ("the Target"), for a combined
consideration of GBP8.26 million (USD10.5 million) ("the
Acquisition"). The business is acquired free from any historic
liabilities. The Target currently generates earnings of
approximately GBP4.3 million (USD5.5 million).
The Assets acquired include:
-- Plant and equipment offering processing capacity in excess of 75 000 tonnes per month
-- All associated property including all rights to existing surface material
-- All stock and materials accolated with operating the business
The aggregate purchase price for the Acquisition shall be
payable by Jubilee to the Target on 7 January 2019, save for the
amount of GBP0.67 million (USD0.85 million) which will become
payable by Jubilee to the Target upon successful registration of
the property into Jubilee or its nominee's name. Jubilee will take
ownership and operational control of the Target on the 7(th) of
January 2019.
The purchase price will be funded through:
-- Secured project financing to the value of USD6 million;
-- A cash payment of USD2.83 million; and
-- The issue of 52,493,438 new Jubilee shares ("Acquisition
Shares") at a price of 2.5 pence per share
Issue of equity
The Acquisition Shares have been issued, conditional on
Admission (as defined below), as fully paid and rank pari passu in
all respects with the existing ordinary shares, including the right
to receive all dividends and other distributions declared on or
after the date on which they are issued. Application will be made
for the Acquisition Shares to be admitted to trading on AIM and to
be listed on the AltX of the JSE Limited, which is expected to take
place on or about 14 December 2018 ("Admission").
Following Admission, the Company's total issued share capital
will comprise 1,363,486,229 Ordinary Shares. As the Company does
not hold any Ordinary Shares in treasury, this figure may be used
by shareholders in the Company as the denominator for the
calculations by which they will determine if they are required to
notify their interest in, or a change to their interest in, the
share capital of the Company following Admission.
The information contained within this announcement is considered
by the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No.596/2014. Upon the publication
of this announcement via a Regulatory Information Service, this
inside information will be considered to be in the public
domain.
10 December 2018
Jubilee Metals Group PLC
Colin Bird/Leon Coetzer
Tel +44 (0) 20 7584 2155 / Tel +27 (0) 11 465 1913
Nominated Adviser
SPARK Advisory Partners Limited
Andrew Emmott/Vassil Kirtchev
Tel: +44 (0) 203 368 3555
Broker
Shard Capital Partners LLP
Damon Heath/Erik Woolgar
Tel +44 (0) 20 7 186 9900
JSE Sponsor
Sasfin Capital (a member of the Sasfin group)
Sharon Owens
Tel +27 (0) 11 809 7500
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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