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.
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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.
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