JOHANNESBURG (miningweekly.com) – Dual-listed Jubilee Platinum has successfully completed project funding for the execution and commissioning of its two surface platinum processing projects.
Funding comprised a combination of senior secured debt to a maximum of R153-million, unsecured debt to a maximum of R76.5-million and an equity placing of R55.2-million.
The funding package allowed for Jubilee to simultaneously execute the two projects, which targeted 80 000 t/m of processed surface material. It would also be able to pursue the acquisition or securing of further surface or shallow platinum-bearing opportunities.
The senior debt between Jubilee’s processing subsidiary and an established financial institution was arranged by RiverFort Capital. Under a loan agreement, the institution had agreed to advance up to R153-million to Jubilee with an initial advance of R49.5-million.
The two processing projects targeted a combined processing capacity of 80 000 t/m of surface material with a yearly design capacity for the recovery of about 33 000 oz of platinum-group metals.
The agreement linked the debt repayment obligation of Jubilee’s processing subsidiary with the commissioning and ramp-up of the platinum processing projects, with the second project targeted for ramp-up in December 2016.
The second project would complement the first project’s processing capacity of 25 000 t/m of feed, while the chromite recovery section of the first project was already commissioned and fully operational.
The unsecured debt provided Jubilee’s processing subsidiary with access to funding of an additional R76.5-million to provide working capital during the ramp-up of the second project.
The unsecured debt would be staggered over two equal tranches, which would fall in line with the second project’s commissioning and ramp-up phases. The final tranche was scheduled for February 2017.
Edited by: Samantha Herbst
Creamer Media Deputy Editor
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