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Jubilee says merger implementation deed, supporting documents completed

25th February 2013

By: Natalie Greve

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – JSE- and Aim-listed Jubilee Platinum had executed the implementation deed and supporting transactional documents relating to its acquisition of Platinum Australia (PLA), the company reported on Monday.

The share-based transaction would see Jubilee acquiring all listed ordinary shares in mining exploration company PLA through offering existing shareholders one Jubilee share for every 2.6 PLA shares held.

The transaction would combine complementary assets and would create a unique platinum-group metals producer with a 63% shareholding in the Tjate project – one of the largest undeveloped platinum resources in South Africa.

“This acquisition offers a relatively unique opportunity to the Jubilee shareholder to acquire a shallow, fully operational platinum mine and processing plant, complemented by near-surface platinum projects valued at a significant premium to the transaction value,” Jubilee CEO Leon Coetzer commented.

He added that the acquisition would accelerate Jubilee's mines-to-metal strategy by some 18 months, and the resultant earlier cash flow would position the platinum explorer to secure further opportunities in the near term.

With the exception of Tjate, all projects were near-term with relatively low capital requirements and could be funded from revenues and profit generated from ongoing production of the enlarged group.

“This transaction is driven both by the quality of assets, as well as the opportunity offered to Jubilee shareholders in acquiring these assets at such favourable terms,” asserted Coetzer.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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