Jubilee Platinum
Jubilee Platinum plc (the “Company”) is a mining exploration and development company with a focus on platinum group elements (PGE) and nickel/copper. The Company’s prime asset in South Africa is the Tjate project, in which it has a 63 % beneficial interest. The project covers some 5140 hectares and is downdip of existing Anglo Platinum’s Twickenham and Impala Platinum’s Marula operations. The project’s exploration area has been independently estimated to be a target for potentially some 65 million oz (41 million oz attributable) of PGEs (platinum group elements) and gold net of geological losses.
Jubilee is also looking to capitalise on the vast untapped mineral wealth of Madagascar, where it is exploring a number of nickel/copper/PGM projects, Londokomanana, Lavatrafo and Ambodilafa, the latter in joint venture with a major Impala Platinum Holdings (Implats) the second largest PGM producer in the world. Jubilee is dedicated to sustainable development and adhering to the highest environmental standards and is also a firm proponent for the role of foreign direct investment as a key form of social development in developing African countries.
Jubilee Platinum stuns market with all share offer for Braemore Resources
Speculation amongst investors and commentators alike for the past few days suggested that Jubilee Platinum (LSE: JLP) was about to announce that it would be acquired by a bigger player.
Rumours of an impending bid were further stoked after fellow platinum junior Sylvania Resources (AIM & ASX: SLV) announced that it would be acquired by Finland’s Rukki for €268 million.
In fact, Jubilee Platinum is the predator, not the prey. This morning it announced an all-share offer for fellow AIM and JSE listed platinum company, Braemore Resources (AIM: BRR).
Jubilee is offering one new share for every 15.818 shares in Braemore Resources. The combined group will have a varied range of projects in Southern African and Australia, including Jubilee’s Tjate Project which sits on the Eastern Limb of South Africa’s famous Bushveld Complex. Jubilee has already defined a SAMREC compliant resource of 25 million ounces 6 PGE (Platinum Group Elements) + Gold and has targeted a resource of 70 million ounces.
Braemore Resources jewel is an exclusive right to the Conroast Technology - a unique smelting technique that can process PGM’s and base metals that contains high levels of chrome, which is a major issue for most smelters in South Africa who apply a penalty to concentrates containing it.
“The merger of the two companies will provide the Tjate Project with add-on smelting and refining capability by now targeting the production of a high quality refined PGM product with considerable increase in value, thereby further enhancing the NPV of the project,” Jubilee stated. “The merger of Braemore and Jubilee will create an enlarged entity that will be an emerging platinum producer in South Africa with an exposure to the whole spectrum of activities within the PGM-industry and therefore demonstrate total capability to handle all aspects pertaining to exploration, mining, dump re-treatment, processing and metal sales.”
Braemore shareholders will hold approximately 30% of the combined company.
Jubilee Platinum has also agreed to fund the operating costs of Braemore whilst the acquisition is completed and to settle ‘some’ of its liabilities.
Jubilee's house broker Finncap said: "The offer values Braemore at 3.29 pence per share or approximately £26 million, which is a discount of 32 per cent to last night’s close. But we believe this is fair value as it reflects the significant project execution risk in building a 10MW ConRoast smelter to commercial scale, costing in the region of $100m."
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Other Jubilee Platinum news
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04/02/10 Jubilee Platinum and Sylvania Resources formalise ConRoast PGM smelting partnership, create 2 new JVs
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11/01/10 Jubilee Platinum appoints former Braemore CEO and chairman to the board
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23/12/09 Jubilee Platinum CEO Bird buys 185,000 more shares in company
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07/12/09 Jubilee Platinum successfully smelts Sylvania’s low grade platinum concentrate
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11/11/09 Jubilee Platinum chairman Burne and CEO Bird buy more shares in company
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10/11/09 Jubilee Platinum says Prudential/M&G Investments increases stake to 14.28 pct
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02/11/09 Jubilee Platinum and Sylvania Resources in PGM tailings smelting alliance
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22/09/09 Jubilee Platinum issues shares to fund Braemore Resources obligations
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12/08/09 GE&CR raises stance on Jubilee Platinum to ‘strong buy’
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06/02/09 Jubilee Platinum finds significant gold anomalies at Ambodilafa