Jubilee concludes Pollux deal with issuance of 1.51m shares

JOHANNESBURG (miningweekly.com) – Concluding its acquisition of Pollux Investment Holdings from Lipsoset Proprietary, mines-to-metals company Jubilee Platinum has made the third and final tranche payment of R1-million through the issuance of 1.51-million shares at a price of 3.06p apiece.

Pollux held the exclusive rights to beneficiate platinum-group metals (PGMs) from the platinum-containing surface material at ASA Metals’ DCM platinum project, in Limpopo.

Jubilee announced last year that it had acquired a 25% interest in Pollux, represented by 25 ordinary shares of R1 each for a total consideration of R10.9-million.

The consideration payable by the company was to be satisfied by the issue of ordinary shares of 1p each in the company, payable in three tranches.

The tranche one consideration shares, equivalent to the value of R5.3-million, were issued and notified to the market on November 3, 2014, while the company announced in June that the tranche two consideration of R4-million had been satisfied through the issuance of 9.87-million shares at a price of 2.1p apiece.

Jubilee had, meanwhile, targeted the construction of a new processing plant for the recovery of chrome and PGMs capable of processing up to 35 000 t of surface material a month.

The company executed an addendum to the processing agreement whereby it was incentivised to accelerate the construction and commissioning of the plant by targeting commissioning of the front end of the plant by early 2016.

Jubilee said in a statement that the addendum “significantly” enhanced and expedited the projected profitability of the project, as both the chrome concentrate and platinum-containing concentrate would now contribute to the overall profitability of the DCM project.