Jubilee Platinum (LON:JLP) has agreed funding for both of its platinum tailings projects in South Africa.
The US$17.5mln package comprises up to US$15mln of senior and unsecured debt and US$2.5mln of equity finance from a placing at 2.8p per share.
Jubilee has rights to the tailings from two chromite mines in South Africa and when both process plants are running expects to be processing 80,000 tonnes of ore each month to recover 33,000 ounces of platinum group metals per year.
The chromite recovery section of the first plant, 25,000 tonnes per month, is already up and running, while the long lead items for the second plant have now been bought, Jubilee said.
RiverFort Capital arranged the debt, which is being advanced in stages with US$3mln and a possible further US$2mln initially.
Leon Coetzer, chief executive, said: “The project funding structure combines both debt and equity, recognizing the future profitability of the projects while securing funding to pursue further such surface or near surface platinum opportunities.
“The successful funding demonstrates the confidence of investors in Jubilee's robust business model."