28th Oct 2013 10:39
LONDON (Alliance News) - Jubilee Platinum PLC Monday said it hopes to start processing tailings from the Dilokong Chrome Mine within the next three months after it got debt and equity financing from YA Global Master SPV Ltd which will more than cover the required working capital.
In a statement, the platinum miner said it has got a USD10 million debt facility, and will only draw down UD750,000, the working capital it needs to re-commission the processing plant at the mine.
The company will also raise GBP625,000 by placing 14.2 million new shares with YA Global Master. It also issued the investor with a further 700,322 shares to cover a USD50,000 facility arrangement fee.
"Jubilee has targeted an initial processing rate of 10,000 tonnes per month ramping up to a targeted 25,000 tonnes per month within 4 months of operation," Jubilee Chief Executive Leon Coetzer said in a statement.
"The processing of the Dilokong Chrome tailings significantly enhances Jubilee's earnings capability and brings the Company a step closer to concluding the proposed Platinum Australia transaction," he added.
Jubilee is currently in discussions with the community to access a second road link to allow the targeted processing capacity to increase to 35,000 tonnes per month, the company said.
Jubilee Platinum shares were down 1.1% at 4.40 pence Monday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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