2nd Jan 2014 10:55
LONDON (Alliance News) - Jubilee Platinum PLC Thursday said it has agreed a GBP10 million equity finance facility with Darwin Strategic Ltd which could see the company make acquisitions in the platinum and other metals industry.
In the same announcement, the AIM-quoted mine-to-metals specialist with operations in Australia and Africa said it had achieved a record production rate at the Middelburg Smelter operation, which produced more than 35 tonnes of ferronickel metal within a single 24-hour shift - exceeding the previous record of 26 tons of metal.
In December, the company said it had secured funding for the final phase of its smelter renewal program, which includes the expansion of the Middelburg Smelter operation to three operating ARC furnaces.
Meanwhile, the company said its equity finance facility, which can be utilised over a 5-year commitment period, will "minimise dilution and maximise value for shareholders when issuing equity".
The move will give Jubilee the necessary funds to pursue potential acquisitions in the platinum sector.
"We will continue to engage with companies holding platinum-bearing assets near or at surface to grow Jubilee's access to these materials. The EFF [equity finance facility] funding structure offers the company the support to access funding when pursuing companies holding such assets," Leon Coetzer, chief executive, said in a statement.
The number of shares which may be issued under any individual subscription notice may be up to the lower of 25% of Jubilee's capital following completion of the relevant subscription - or four times the average daily trading volume of Jubilee's shares over the 15 trading days preceding the issue of the relevant subscription notice.
Jubilee shares were Thursday quoted at 3.18 pence, up 0.11 pence, or 3.6%.
By Samuel Agini; [email protected]; @samuelagini
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