Cautionary Announcement Update

RNS Number : 2484E

Jubilee Platinum PLC

05 April 2011

 



Jubilee Platinum PLC                                            

05 April 2011

The AIM: JLP

JSE: JBL

Registration number: 4459850

ISIN: GB0031852162                                                                                                    

Jubilee Platinum

("Jubilee" or "the Company")

Mining opportunity identified with near-surface chrome ore bodies containing platinum group elements

CAUTIONARY ANNOUNCEMENT UPDATE

The Board of Jubilee, the AIM traded and JSE quoted mine to metal specialist, is pleased to announce that the Company has executed a binding Memorandum of Understanding ("MOU") for the acquisition of an operating company (the "target company") that treats near-surface chrome ore bodies containing platinum group elements ("PGE") and an associate company, which holds certain mining and prospecting rights. The target company's operation in the western bushveld is approximately 200 kilometres west of Jubilee's Middelburg smelting facility. The implementation of the transaction contemplated by the MOU is subject to the fulfilment of conditions precedent. It is anticipated that the formal agreements will be concluded by the Q2 this year. 

Leon Coetzer, Chief Executive Officer of Jubilee said: "This MOU falls in line with Jubilee's strategy of acquiring near-term platinum mining opportunities to produce platinum concentrate for our Middelburg processing facility.  Processing of our own platinum concentrates significantly enhances the business model for Jubilee."

The target company owns and operates a chrome ore beneficiation plant, which produces chromite concentrate. The plant currently treats chrome ore from the target company's small open pit operation on MG (Middle Group) chromitite reefs and from third party purchases. The target company has an estimated 500,000 tons surface stockpile of PGE-rich mined chrome ore tailings generated from its previous beneficiation operations and, which it is believed, could contain potentially in excess of 40,000 ounces of PGEs. The Company notes that these estimates of tonnage and PGE ounces are not a resource statement. The target company's property also includes an Upper Group -UG1- PGE-bearing chromitite reef, which outcrops on the property and, which limited drilling suggests, has continuity down dip.  This UG1 reef could be mined immediately by open pit.  

The beneficiation plant is capable of processing 70,000 tonnes per month of chrome ore, producing a chromite concentrate for the chrome industry, while continuing to deposit PGE-bearing tailings onto the current surface stockpile.  It is envisaged that a PGE concentrator plant, to recover the PGEs from current plant tailings and from the stockpiled mined chrome ore tailings can be constructed within 24 months to supply PGE concentrate to Jubilee's Middelburg smelting facility.

The Company advises that the Cautionary Announcement dated 14 March 2011 was released in accordance with Rule 3.9 of the JSE Limited. Such announcements are intended to caution investors about dealing in Jubilee shares when the company is in a price-sensitive situation. The cautionary was issued due to these ongoing negotiations.

The Company will continue to issue cautionary announcements, as necessary, in compliance with JSE Limited requirements, when the Company is in a price-sensitive situation, such as acquisition, disposal or merger discussions with another party.

Contacts

Colin Bird/Leon Coetzer 

Jubilee Platinum plc                           

Tel [phone] / Tel [phone]

Andrew Sarosi          

Jubilee Platinum plc             

Tel [phone]    

Matthew Robinson/Ben Thompson - Corporate Finance

Joanna Weaving - Corporate Broking

finnCap Ltd

Tel [phone]

Michael Kinirons/Nick Rome

Bishopsgate Communications Ltd

Tel [phone]

Corporate Sponsor

Sasfin Capital

(A division of Sasfin Bank Limited)

 

END

 

 

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