Jubilee secures standby equity distribution deal

Jubilee Platinum has secured a GBP15 million standby equity distribution agreement that will allow it to seek acquisition opportunities in near-term mining projects.

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The company said on Tuesday that the agreement had been entered into with YA Global Master SPV Ltd, an investment fund managed by Yorkville Advisors LLC.

The funds available under the agreement would be used by Jubilee to enter into joint ventures with or to acquire small chrome and platinum mines.

"Such joint ventures or acquisitions complement the ConRoast business by securing concentrate or concentrate purchase."

Jubilee's ConRoast project is located in the northwest of the country.

Commenting on the agreement, Leon Coetzer, CEO of Jubilee said: "We are delighted to be announcing this standby arrangement for funds of up to GBP15 million.

"This will enable Jubilee to take advantage quickly of identified opportunities to acquire small to medium platinum-chrome mines consistent with the ConRoast growth strategy."

The facility meant that the company could acquire suitable targets without recourse to current cash, which had been allocated for its ongoing Middelburg smelter expansion and project development plans.