04 Oct Tjate’s Quartzhill Farm
Jubilee receives on behalf of Tjate Platinum Corporation, ZAR75M cash offer to Tjate for Tjate’s Quartzhill farm, a portion of Tjate’s Platinum Project
Jubilee, the AIM listed and JSE quoted mine to metals specialist, is pleased to announce that it has received, on behalf of Tjate Platinum Corporation (Pty) Ltd (Tjate), in which Jubilee is a shareholder, a formal offer (“Offer”) from a major mining company to acquire from Tjate for ZAR75 million (c.£5.95 million at current exchange rates) in cash, Tjate’s Quartzhill farm (“Quartzhill”), which is a portion of Tjate’s Platinum Project.
- ZAR75 million cash offer received from a major miner for Tjate’s Quartzhill farm;
- Jubilee will be recommending the Offer to Tjate Shareholders;
- Quartzhill has not been drilled and is not included in Tjate’s long-term mining plans; and
- The Offer from a major minor endorses Jubilee’s original decision to earn-in into Tjate.
The Tjate platinum project comprises three contiguous farms Dsjate, Fernkloof and Quartzhill. Quartzhill lies to the northwest of Tjate’s projected first mine area, which comprises only the Dsjate farm. The Tjate project is well located relative to major mining companies.
The Company believes that this Offer, which the Offeror considers a strategic acquisition, is acceptable because:
a) Quartzhill lies outside of the centre of gravity of Tjate’s projected first mine area and therefore costs of mining this block could be potentially prohibitive;
b) Quartzhill’s platinum reefs are deeper than those targeted on Dsjate; and
c) Quartzhill has not been drilled and therefore is not included either in Tjate’s current SAMREC compliant resource estimate or in Tjate’s long-term mining plan.
Other than the cash that Tjate would receive as a result of this Offer, the effect of the transaction on the value of the assets of Jubilee is not considered material.
The Offer, which Jubilee will be recommending to Tjate shareholders, is subject to the approval of Tjate shareholders, the Department of Mineral Resources (DMR), other regulatory bodies and the Offeror’s board, and is subject further to the Offeror’s satisfactory due diligence.
Leon Coetzer CEO of Jubilee commented:“This Offer for Quartzhill recovers value to Tjate shareholders, but does not detract from the Project’s mineable value currently attributable to Jubilee, since Quartzhill has not been drilled, is distant from the targeted shaft and so potentially not viable to mine and therefore has been excluded from the current mine plan proposed in Tjate’s recently submitted Mining Right application to the DMR.”
Colin Bird Chairman of Jubilee said: “This cash offer gives Jubilee and all the Tjate shareholders the potential to monetise, in the short term, a very long-term and therefore non-core asset. Further, the Offer is a credibility endorsement of the Company’s original decision to earn-in into Tjate.”
Colin Bird/Leon Coetzer
Jubilee Platinum plc
Tel +44 (0) 20 7584 2155 / Tel +27 (0)11 465 1913
Jubilee Platinum plc
Tel +44 (0) 1752 221937
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