3rd Nov 2014 12:17
LONDON (Alliance News) - Jubilee Platinum PLC Monday said it has entered into an agreement to increase its stake in the DCM platinum recovery project in South Africa and reported an increase in production from its Middleburg smeltering facility during October.
During October, Jubilee's Middleburg smeltering facility produced more than 950 tonnes of metal, an 13% increase from the 840 tonnes of metal produced during September.
"We are very pleased with the operational performance achieved by the Middelburg smelter operations. The company has demonstrated its ability to successfully implement a complex smelter renewal and upgrade project within the existing older infrastructure. The operation has achieved its operational and financial targets which allow us to fully focus on bringing into operation our DCM Platinum Recovery Project at ASA Metals," said Chief Executive Leon Coetzer.
Jubilee has entered a sale of shares agreement with Lipsoset Propietary Ltd. Jubilee will acquire the entirety of Liposet's stake in Jubilee's subsidiary, Pollux Investment Holdings Proprietary Ltd for a consideration of ZAR10.7 million. Jubilee currently has a 62.5% stake in the subsidiary, and this will increase to 92.5% following the deal.
It has also made the same offer to the holders of the remaining 7.5% stake in the company, which will give Jubilee a 100% stake in Pollux if accepted.
Pollux holds the processing rights to the DCM platinum recovery project, owned by ASA Metals Proprietary Ltd. Following the deal, Jubilee will have a 92.5% stake in the DCM project and take full operational control of the project, it said in a statement.
"The company is pleased to be increasing its shareholding in the DCM platinum recovery project to 92.5%. The company believes that the DCM platinum recovery project offers tremendous upside value to Jubilee and it is opportune for the company to be able to increase its beneficial interest in this project at this early stage of the project. Jubilee is now able to drive this project to production within the near term," said Jubilee in a statement.
"ASA Metals Proprietary Limited, the owners of the DCM operation, has given their full support to the DCM platinum recovery project," said Jubilee.
Jubilee shares were up 2.00% to 1.30 pence per share Monday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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