Business
Disposal of non-core asset
Disposal of non-core asset.
About this update from Jubilee Metals Group Plc
[{"type":"text","content":"\n \nRNS Number : 6676F Jubilee Platinum PLC 28 May 2013 \n \n\nAIM: JLP\nJSE: JBL\nRegistration number: 4459850\nISIN GB0031852162\n28 May 2013\nJubilee Platinum PLC\n(\"Jubilee\" or the \"Company\")\n \nDisposal of non-core asset\nUpdate on proposed acquisition of Platinum Australia Limited\nCautionary Announcement\n \nHIGHLIGHTS\n· Jubilee reduces its holding in the peripheral non-platinum ferroalloy smelter and power plant assets while retaining its platinum processing capacity at Middelburg for an aggregate cash consideration of USD14 million (\"the Transaction\")\n· The sale enables Jubilee to liquidate its non-platinum ferroalloy smelting operation while retaining its Platinum processing ability\n· The Transaction may be executed over two tranches, namely a disposal which includes the sale of 65% of the issued share capital of JSR and 40% of the issued share capital of PowerAlt (\"the Disposal\") and an option whereby Jubilee retains an exclusive put option for the remaining share capital held by the Company (\"the Option\")\n· Jubilee retains the utilisation of the new 5MW arc furnace at Middelburg for the processing of platinum containing materials\n· Jubilee has an irrevocable free option for a period of two years from the date of the sale agreement to install an additional 5 MW DC arc furnace complete at the Middelburg smelter\n· Jubilee has the right to participate in any expansion of the power plant over a period of two years\n· The proceeds from the Disposal will expedite bringing the Jubilee's current platinum projects forward thereby realising the Jubilee's platinum Mine-to-Metals strategy.\nUpdate on Platinum Australia Limited (PLA) Transaction\n· The timeline required to meet the condition precedent (\"CP\") for securing of financing as stated in the Implementation Deed entered into between PLA and Jubilee has been moved to coincide with the first court hearing for the proposed Scheme of Arrangement between the two companies targeted for 10 June 2013.\n· The extended time-line falls in line with the legal proceeding of the proposed Scheme of Arrangement and ensures adequate time to e...