Jubilee raises R13.18m for PGM, chrome processing plant studies

11th February 2015 By: Natalie Greve - Creamer Media Contributing Editor Online

JOHANNESBURG (miningweekly.com) – Dual-listed Jubilee Platinum has, through the placement of 49.9-million shares at R26.35 apiece, secured nearly R13.18-million in funding for the detailed design and engineering of its planned chrome and platinum group metals (PGMs) surface processing operations.

The design and engineering programmes, due for completion in April, would allow for the construction of a chrome beneficiation processing plant at the Hernic Ferrochrome operation, in the North West, as well as a surface PGM plant at ASA Metals’ Dilokong chromite mine, near Burgersfort, in Limpopo.

Jubilee was awarded the rights to recover PGMs from high PGM-bearing dumped chromite tailings on the Dilokong chromite mine in 2012, allowing it to beneficiate and recover contained PGMs from about 800 000 t of historic dump tailings, as well as between 8 000 t/m and 15 000 t/m of current and future output from the mine.

In addition, the company last month entered into a heads of agreement with integrated ferrochrome producer Hernic for the beneficiation of the chrome and PGMs contained in its surface tailings. 

The company said it would further issue 24.6-million ordinary shares at R26.35 apiece on behalf of its subsidiaries Braemore Resources, RST Special Metals and Jubilee Smelting and Refining in lieu of debt for services provided.

This would settle debt of R6.5-million.

CEO Leon Coetzer noted that the execution of the two surface PGM processing projects, with potential to access more than 4.5-million tons of platinum-containing material at surface, was a significant step forward for the company and defined the key deliverables for Jubilee over the next 12 months.

“The projects have the ability to increase Jubilee’s earnings with a significant multiple and will redefine Jubilee as a fully operational low-cost PGM producer complemented by its exclusive ConRoast process and the Tjate platinum project. 

“The executed fundraising has been limited to target the funding of the design and engineering execution studies, while the company engages with financial institutions to maximise the exposure to project funding, supplemented by the income from the sale of noncore exploration assets to minimise expected shareholder dilution,” he commented.

The company added in a statement that it was continuing to advance the application for a mining right for its Tjate platinum project, in Limpopo.

As previously announced, Jubilee subsidiairy Tjate Platinum Corporation executed a sale of rights agreement with Anglo American Platinum for the sale of its noncore Quartzhill property for R75-million.

The sale of rights agreement was conditional only on the approval by the Department of Mineral Resources (DMR), whose approval was linked to the mining right for the larger Tjate platinum project.

Tjate outlined on Wednesday that it had received formal communication from the DMR that an environmental rehabilitation guarantee to the value of R27-million be provided to the department.

“This request from the DMR is traditionally indicative of the final step towards receiving the grant of the mining right [and] we look forward to receiving the mining right in the very near term,” noted Coetzer.