Jubilee Platinum to secure funding for its platinum surface projects

Jubilee Platinum Plc confirmed it is currently in advanced talks with a financial institution to secure the project financing required to bring two surface platinum processing plants into production. 

The Company reported that the size of the debt funding is R255 million before financing costs and although the funding has received credit approval there is no guarantee that the debt financing will be successfully completed. 

Capital required for the construction of both surface platinum and chrome beneficiation processing plants is estimated at R271 million. Furthermore, working capital required to bring the platinum surface projects to operation and achieve positive earnings is estimated at R75 million. 

In order to cover the funding shortfall, Jubilee Platinum will sell its non-platinum operational assets, subject to shareholder approval. The Company’s platinum surface projects will target to process approximately 80 000 tonnes per month of platinum containing surface material delivering an estimated production of 42 000 ounces of platinum group metals per annum. The platinum surface project is expected to achieve an internal rate of return in excess of 30% net of taxation. 

Leon Coetzer, Chief Executive Officer of the Company,  commented,  “The Company continues to drive hard the time lines of both Platinum Surface Projects aim for the commissioning of both projects in June 2016.”

Jubilee Platinum is a JSE and AIM listed exploration and development company with platinum and power operations in South Africa as well as nickel, iron and copper interests in Madagascar.