Exploration and development company Jubilee Platinum will secure the terms of a funding package to reinstate operations at the near surface Phokothaba Mine, under a proposed transaction with Platinum Australia, the mining company disclosed in a statement today.
Further to an announcement made on December 14th regarding a proposed business combination or merger with Platinum Australia, Jubilee Platinum announced that the parties had agreed to extend the binding and exclusive terms of the heads of agreement to January 28th.
Under the proposed transaction, Jubilee will be able to reinstate operations at the Phokothaba Mine, which is currently placed under the case and maintenance of Platinum Australia.
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Jubilee stated that it had secured indicative terms sheets for the project financing structure from financial institutions and would work towards concluding the funding structure within the extension period.
Leon Coetzer, Chief Executive Officer of Jubilee, said: "We are pleased with the progress made towards effecting the proposed transaction with Platinum Australia.
"The targeted enlarged group would include the combination of shallow and at-surface mining and exploration assets together with a fully operable shallow mining operation and smelters, underpinned by the very large Tjate mining exploration asset."
Jubilee's share price was up 6.85% to 9.75p at 13:39 on Wednesday afternoon.
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