Mine-to-metals company Jubilee Platinum has received the R110.5-million cash consideration from Siyanda Resources in terms of the disposal of Jubilee Smelting & Refining (JSR) and its 70% stake in Power Alt (PA).
The remaining 15% is held in escrow, with a further 10% to be released from escrow after 90 days and the remaining 5% after 12 months.
JSR is the owner of the Middelburg smelter, while PA owns and operates Jubilee’s on-site 11 MW gas-fired electricity generation plant.
Ownership and associated risk of the operations passed to Siyanda on September 30.
“Receipt of the cash payment for the transfer of ownership and related risks of the Middelburg operations now concludes the disposal.
“The proceeds from the disposal, together with debt funding being concluded with a major institution and for which credit committee approval has already been secured, will be used for the simultaneous execution of our two platinum surface projects,” says Jubilee CEO Leon Coetzer.
Jubilee is now set to become a fully operational platinum producer in 2016, with the two surface platinum projects offering the company significant earnings potential.
The company says it will, meanwhile, continue to seek further low-cost platinum opportunities.”