Jubilee raises £2.44m to fund platinum projects

5th August 2015 By: Megan van Wyngaardt - Creamer Media Contributing Editor Online

JOHANNESBURG (miningweekly.com) – Dual-listed platinum miner Jubilee advised shareholders on Wednesday that it had placed 71.8-million new ordinary shares of 1p each at a price of 3.4p apiece, raising £2.44-million.

The combined funds from the placing, together with the debt funding and the sale of non-platinum operational assets, would address funding requirements for the design, construction, commissioning and working capital during the ramp-up phase of its two platinum surface projects.

The projects aimed to process 80 000 t/m of platinum containing surface material to deliver estimated production of 42 000 oz/y of platinum group metals (PGMs) in concentrate.

“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,” CEO Leon Coetzer said.

The board was in advanced talks with a major financial institution to secure the debt element of the project financing required to bring its two projects into operation. The rand-based debt funding equated to  £12.9-million before financing costs, while project capital required was estimated at £13.71-million.