Jubilee Platinum has concluded a Memorandum of Understanding (MOU) with Macquarie Bank to provide funding in support of its proposed acquisition of Platinum Australia.
The MOU was for a US$10.5 million debt facility secured at project level.
Leon Coetzer, CEO of Jubilee, said they were delighted to have received such significant backing from MBL – PLA’s largest creditor. “We are fully focused on completing this acquisition and creating a platinum mining group with the potential to be a significant player within the platinum producers in the world.
“We are combining strongly complementary assets between Jubilee and PLA that enable us to form a fully integrated Mine-to-Metals company – able to exploit shallow resources in the near term while continuing to develop Tjate in the longer term to the benefit of both Jubilee and existing PLA shareholders.”
Tjate is 63%-owned by Jubilee and is located on the eastern limb of the Bushveld Complex, in South Africa.. It is independently judged to contain the world’s largest undeveloped defined block of platinum ore.
Jubilee and PLA have agreed, subject inter alia to the MOU and to PLA shareholder approval, that PLA shareholders will now receive one Jubilee share for approximately every 5.68 PLA shares held calculated at current Jubilee shares in issue – significantly reducing the dilution of Jubilee shareholders following implementation of the Scheme. As such, PLA shareholders will hold 16.5% of the issued share capital of Jubilee following the implementation of the Scheme.
To give full effect to and to formalise this MOU, PLA and Jubilee have agreed to extend the End Date in clause 1.1 of the Implementation Deed from 31 July 2013 to 30 September 2013 and the PLA Deed Administrator has adjourned the Scheme meeting called for 30 July 2013 to allow PLA and Jubilee to incorporate the amendments to the Scheme Booklet following both the signing of the MOU and the adjusted scheme consideration.
“While the implementation period has been extended, we are extremely pleased to have significantly reduced the cost and dilution to Jubilee shareholders and look forward to further updating the market in due course,” said Coetzer.
Jubilee Platinum plc is a platinum focused mining and exploration company with world-class platinum assets.