Business
Update on Disposal
Update on Disposal.
About this update from Jubilee Metals Group Plc
[{"type":"text","content":"\n \nRNS Number : 7911K Jubilee Platinum PLC 02 August 2013 \n \n\nJubilee Platinum PLC\nRegistration number (4459850)\nJSE share code: JBL\nAIM share code: JLP\nISIN: GB0031852162\n \n2 August 2013\n \n \nJubilee Platinum\n(\"Jubilee\" or the \"Company\")\n \nSHAREHOLDER UPDATE ON THE DISPOSAL OF NON-CORE FERRO ALLOY SMELTERS AND POWERPLANT ASSETS BY JUBILEE \n \n \nShareholders are referred to the announcements dated 28 May, 3 June and 19 June 2013 in relation to the Sale of Shares agreement (\"Agreement\") with Global Renewal Energy Limited (\"GRE\"). The terms of the agreement are such that GRE has agreed to acquire the issued share capital of Jubilee Smelting and Refining (Pty) Ltd in Middelburg (\"JSR\"), a wholly owned subsidiary of Jubilee and the 70% of the issued share capital of Power Alt (Pty) Ltd (\"PowerAlt\") (the \"Assets\") for an aggregate cash consideration of US$14 million (\"Transaction\").\n \nIt was agreed that the Transaction may be executed over two tranches, namely a disposal (\"Tranche 1\") 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\"). The Option was secured by Jubilee to evaluate Jubilee's continued exposure to the revenue generated by these non-core assets versus the value of the put-option.\n \nConsideration for the Disposal comprised a non-refundable deposit payment of US$0.2 million plus an amount of US$8.9 million which was due to be paid on or before 31 July 2013 under the extension granted by Jubilee (the \"Second Payment\"). The granted extension for the Second Payment was also subject to further payments by GRE to JSR which included the funding of the expansion of the JSR smelter off gas systems.\n \nTo date Jubilee has received the non-refundable deposit payment of US$0.2 million as well as US$0.56 million (ZAR5.6 million) non-refundable funding from GRE - in settlement of specified creditors of JSR and PowerAlt and to fund increased production of the smelting complex (as announced on 19 June 2013). \n \nHowever, while GRE has made payments under the extension granted it is in default of the stipulated payment ...