JOHANNESBURG (miningweekly.com) – JSE- and Aim-listed Jubilee Platinum has concluded a memorandum of understanding (MoU) with Macquarie Bank for a $10.5-million debt facility secured in support of Jubilee’s proposed acquisition of embattled miner Platinum Australia (PLA).

This came as Jubilee and PLA reached an agreement to reduce the consideration of the proposed acquisition, which would see PLA shareholders receiving one Jubilee share for every 5.68 PLA shares held.

This would significantly reduce the dilution of Jubilee shareholders, resulting in PLA shareholders holding 16.5% of the issued share capital of Jubilee following the implementation of the scheme.

To give it time to formalise the MoU, PLA and Jubilee have, once again, agreed to extend the acquisition date from July 31 to September 30.

Jubilee CEO Leon Coetzer said on Tuesday that the company was “delighted” to have received significant backing from Macquarie Bank, which was PLA’s largest creditor, adding that the company was “fully focused” on completing the acquisition.

“We are combining strongly complementary assets between Jubilee and PLA that enable us to form a fully integrated mine-to-metals company that is able to exploit shallow resources in the near term, while continuing to develop the Tjate platinum project in the longer term,” he commented.

The proposed acquisition of PLA affords Jubilee the opportunity to acquire a fully operational platinum mine and processing plant on the eastern limb of the Bushveld Igneous Complex, supported by a shallow platinum-bearing upper group two reef.

The transaction would also position Jubilee as a large South African platinum group metals producer, supported by strong prospects for expansion through the development of its near-surface resources.
Coetzer added that, while the implementation period had been extended, Jubilee was “extremely pleased” to have significantly reduced the cost and dilution to Jubilee shareholders.