JOHANNESBURG (miningweekly.com) – JSE- and Aim-listed Jubilee Platinum on Friday said the Federal Court of Australia had, at a court hearing on June 20, given orders for Platinum Australia (PLA) to hold a shareholder meeting to consider and vote on the implementation of Jubilee’s proposed acquisition of PLA.
At the hearing, the deed administrator and PLA directors unanimously recommended that, in the absence of a superior proposal, PLA shareholders vote in favour of the resolution to approve the scheme at the scheme meeting, which was scheduled for July 30.
Subject to the approval of PLA creditors of a creditor compromise agreement that would be sought in the next few weeks and the approval of the scheme by PLA shareholders, as well as the timely satisfaction or waiver of the conditions precedent, PLA and Jubilee expected the scheme to be implemented by mid-August.
"This is a significant milestone for the transaction. We are delighted that the first court hearing has now taken place and that we can focus on driving this transaction forward. The proposed enlarged entity combines shallow and at-surface mining and exploration assets together with a fully operable processing facility and smelters to create an integrated platinum company," Jubilee CEO Leon Coetzer said.
Earlier this week, Jubilee said a liquidation application by Westdawn Investments, trading as JIC Mining Services, against PLA subsidiary PhokaThaba had been set aside, with PhokaThaba agreeing to pay a settlement amount of R3.5-million to JIC.
JIC had launched the liquidation application in the High Court of South Africa North Gauteng division on May 28, owing to a dispute over outstanding payments.
The acquisition afforded 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.