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Jubilee, Platinum Australia proposed merger talks advance

16th January 2013

By: Natalie Greve

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – Aim- and JSE-listed Jubilee Platinum and ASX-listed Platinum Australia had agreed to extend the terms of the heads of agreement regarding a proposed business combination to January 28, Jubilee said on Wednesday.

Under the proposed transaction, Jubilee would secure the terms of a funding package to reinstate operations at Platinum Australia’s near-surface Phokothaba mine, which is currently under care and maintenance.

Jubilee had secured indicative term sheets for the project financing structure from financial institutions and said it would work towards concluding the funding structure within the extension period.

Jubilee CEO Leon Coetzer said the targeted enlarged group would include the combination of shallow and at-surface mining and exploration assets together with a fully operable shallow mining operation and smelters, underpinned by the large Tjate mining exploration asset.

The Tjate platinum project was the company’s prime asset in South Africa and was alleged to host the world’s largest undeveloped block of defined platinum ore, covering some 5 140 ha, with a potential target of some 65-million ounces of platinum-group elements and gold.

Following the announcement, Jubilee Platinum’s share prices on the JSE rose by 9.6% to R1.37 a share at 16:00 on Wednesday afternoon.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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