JOHANNESBURG (miningweekly.com) – Mines-to-metals company Jubilee Platinum will sell its Jubilee Smelting and Refining (JSR) subsidiary and a 70% interest in its Power Alt subsidiary to special purpose vehicle (SPV) Main Street 1347 for R110-million.
The SPV, a nominee company of Siyanda Resources, was established for the purposes of the disposal.
It would buy JSR, which owned the Middelburg smelter complex, for R72-million, and the 70% stake in Power Alt for R38.5-million.
Jubilee would retain the right to a furnace of up to 5 MW on the premises of JSR's subsidiary RST Special Metals, for the purpose of processing platinum-bearing material.
It would also retain all intellectual property in relation to the development of the platinum recovery from waste and surface tailings developed at the Middelburg operations.
“The disposal is in keeping with our stated mission of processing own platinum-group metal production. Jubilee retains the right to a 5 MW ConRoast smelting facility at Middelburg and receives significant cash to assist in the financing of its future surface platinum processing operations.
“Terms for further funding, required to simultaneously execute both platinum surface processing projects, have been offered by a number of financial institutions. I am delighted with the outcome of the disposal and remain committed to further growth of all of our platinum activities,” commented Jubilee CEO Leon Coetzer.
The company's share price on the JSE surged 10.53% to 42c, while its share price on the LSE rose by 14.29%, on Thursday afternoon.