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London listed Jubilee Platinum (LSE:JLP) has secured funding for its Surface Platinum projects.
London listed Jubilee Platinum (LSE:JLP) has secured funding for its Surface Platinum projects.
As quoted in the press release:
Jubilee, the AIM-quoted and AltX-listed Mine-to-Metals specialist, is pleased to announce that it has secured the funding shortfall from the offered debt funding for the simultaneous execution of its two Platinum Surface Projects by completing a placing of 71,834,833 new ordinary shares of 1 pence each (“Ordinary Shares”) in Jubilee (the “Placing Shares”) at a price of 3.4 pence (ZAR 67.20 cents) per share, being a premium of 3.3% to the 30 day volume weighted average price of Jubilee as at 4 August 2015, to raise approximately GBP 2. 442 million (ZAR 48.27 million) at current conversion rates.
As previously announced, the Board is in advanced talks with a major financial institution to secure the debt element of the project financing required to bring its two Platinum Surface Projects into operation. The size of the ZAR based debt funding equates to GBP 12.9 million (ZAR 255 million) before financing costs. The project capital required for the Platinum Surface Projects is estimated at GBP 13.71 million (ZAR 271 million). The capital estimation is based on a ZAR to USD exchange rate of approximately 12.2. The working capital required to bring the Platinum Surface Projects to operation and to achieve positive earnings is estimated at GBP 3.8 million (ZAR75 million).
The secured placing allows the Company to remain on-track with the execution of the Platinum Surface Projects. The combined funds from the placing together with the debt funding and the sale of the non-platinum operational assets (subject to shareholder approval at the GM on 7 August 2015), will address funding requirements for the design, construction, commissioning and working capital during the ramp-up phase of the Platinum Surface Projects.
Jubilee Platinum CEO, Leon Coetzer, said:
We are pleased to be able to have secured funding for the continued simultaneous execution of its Surface Platinum Projects. The funding package has placed us on a sound footing to transform Jubilee into a significant PGM producing company. We continue with our mission to acquire similar projects and enlarge the Company’s production capacity utilising our knowledge and experience to the best interest of our shareholders.