Jubilee Platinum jumps on disposal of non-core asset

Jubilee Platinum, the AIM-listed and JSE-listed mine-to-metals specialist, has concluded a sale of shares agreement with Global Renewal Energy (GRE), through which GRE will acquire from Jubilee, inter alia, the issued share capital of Jubilee Smelting and Refining (Pty) (JSR), a wholly-owned subsidiary of Jubilee and the issued share capital of Power Alt (Pty)(PowerAlt), for an aggregate cash consideration of 14m dollars.

Jubilee Platinum, the AIM-listed and JSE-listed mine-to-metals specialist, has concluded a sale of shares agreement with Global Renewal Energy (GRE), through which GRE will acquire from Jubilee, inter alia, the issued share capital of Jubilee Smelting and Refining (Pty) (JSR), a wholly-owned subsidiary of Jubilee and the issued share capital of Power Alt (Pty)(PowerAlt), for an aggregate cash consideration of 14m dollars.

The group said that the transaction would be executed over two tranches, namely the disposal and the option. It said that the disposal would include the sale of 65% of the issued share capital of JSR and 40% of the issued share capital of Power Alt for a cash consideration of $9.07m.

As part of the agreement, Jubilee said that it had retained the right to utilise the new 5MW AC arc furnace for the processing of platinum containing materials as well as the right to construct a second furnace subject to power availability at the Middelburg property.

Jubilee furthermore, in terms of the option, sid that it had been granted an irrevocable put option in its favour, and at its election, over a period of two years to dispose of the remaining shareholding in JSR and PowerAlt for a cash consideration of $4.93m.

Leon Coetzer, Chief Executive Officer of Jubilee, said: "Jubilee has been successful in bringing to value its shareholding in the non-core ferroalloy smelting business and associated power plant. This enables Jubilee to direct the proceeds from the disposal of the non-core ferroalloy smelters into the continued development of the company's platinum mine-to-metals strategy."

He added: "Our immediate focus is to expedite the recovery of platinum from the Dilokong Chrome Mine tailings while we target further such surface material opportunities. The proceeds from the Disposal enables Jubilee to further capitalise on platinum opportunities presented to the Company due to current challenges within the platinum industry."

Jubilee Platinum's share price was up 7.27% to 7.38p at 10.20 on Tuesday morning.

MF

Recommended

Too embarrassed to ask: what is short selling?
Too embarrassed to ask

Too embarrassed to ask: what is short selling?

Short sellers are often accused of unfairly driving share prices down to make a quick buck. But short selling is a perfectly legitimate – if risky – t…
26 Jan 2021
Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Bitcoin does consume a lot of energy – but here’s why it’s worth it
Bitcoin

Bitcoin does consume a lot of energy – but here’s why it’s worth it

Some people question bitcoin’s legitimacy because it uses huge amounts of electricity to maintain its network. But that’s not a failing, says Dominic …
27 Jan 2021
Joe Biden’s spending spree will lift American spirits and markets – but it comes with a sting in the tail
US stockmarkets

Joe Biden’s spending spree will lift American spirits and markets – but it comes with a sting in the tail

New US president Joe Biden is planning to throw trillions of dollars in stimulus at his country’s economy. Markets will love that. But it comes with a…
25 Jan 2021
Think Tesla is a bubble? This might be the best way to bet on it bursting
Oil

Think Tesla is a bubble? This might be the best way to bet on it bursting

The huge rise in Tesla’s share price means that, by market value, it’s now the sixth-largest company in the US and and the world’s biggest car-maker. …
25 Jan 2021