Strategic Partnership Update



 

26 November 2010
AIM: JLP
JSE: JBL
Registration number: 4459850
ISIN: GB0031852162

Jubilee Platinum Plc
(“Jubilee” or “the Company”)

 

Joint Announcement

 

Jubilee and Sylvania enter into a specific agreement on PGE/Ni, Cu smelting and refining of Sylvania’s new JORC compliant Volspruit deposit

 Further to previous joint announcements on 2 November 2009 and 4 February 2010, Jubilee and Sylvania (collectively “the Parties”) are pleased to announce that they have entered into the Volspruit Smelting and Refining Agreement (“Smelting Agreement”) that sets out the respective responsibilities of the Parties and milestone achievements for the next phase of their strategic partnership.

 The Smelting Agreement seeks to expand on the Framework Agreement whereby the Parties have agreed to extend their joint investigations progress as a study into the design and construction of a smelter and refinery complex allocated to processing concentrate from the proposed Volspruit mine that is currently being developed by Sylvania.

 The Volspruit mine project and the Volspruit smelter/refinery projects are inter-related and will be developed concurrently by Sylvania and the Sylvania/Jubilee JV respectively, with the intention of developing solutions that will allow the viable exploitation of concentrates which cannot be treated by conventional processes. The combination of the ConRoast process with a DC arc smelter associated with a base metal refining process is the key to unlocking value from these concentrates. The base metal refining process that has been identified produces base metal products including iron (which is normally a discard product) in a form that commands a premium on London Metal Exchange prices.

 Under the Smelting Agreement the Parties have agreed that a Scoping study will be completed by 28 February 2011, and if satisfied with the outcome the Parties will incorporate a new company and subscribe equally for the shares in the new company and enter into a shareholder agreement.

 Subject to finalizing the establishment of the new company, the Parties will procure that the new Company will conclude a pre-feasibility study at a budgeted cost of R2 million (~£180,000) by 31 May 2011.

 Subject to both Parties being satisfied with the results of the pre-feasibility study, the new company will then proceed to conduct a bankable feasibility study and use all reasonable endeavours to complete the bankable study by 31 January 2012. An amount of R5 million (~£445,000) has been budgeted for this study. The budgeted amounts for each study may be increased by agreement by both parties and will be equally funded by the parties.

 

 

 For further information please contact:

 

South Africa

 

Jubilee Platinum

Sylvania Resources 

 

Leon Coetzer

Chief Executive Officer

Braemore Platinum (Pty) Ltd         

Tel +27  (0) 11 4651913

        

Terence McConnachie

Managing Director

Tel +27 11 673 1171

Leonard Eiser

Sasfin Capital Tel +27 (0) 11 809 7500

 

Louis Carroll

Finance Director/Joint Company   Secretary

Tel +27 11 673 1171

                                              

United Kingdom

 

Andrew Sarosi                                                 

Jubilee Platinum plc                                            

Tel +44 (0) 1752 221937

 

Richard Brown

Ambrian Partners Limited, Nominated Adviser

Tel +44 20 7634 4700

 

Michael Kinirons                                            

Bishopsgate Communications Ltd                               

Tel +44 (0) 20 7562 3350     

Laurence Read/Beth Harris

Threadneedle Communications

Public Relations Adviser

Tel +44 20 7653 9855

 

Matthew Robinson

FinnCap

Tel +44 (0) 20 7600 1658

 

 

Australia

 

Richard Rossiter

Non Executive Chairman

Tel +61 41 868 8338

 

Grant Button

Director/Joint Company Secretary

Tel +61 8 922 64777