Platinum. Picture: REUTERS
Platinum. Picture: REUTERS

Jubilee Metals Group, the London-and Johannesburg-listed miner exploiting platinum and chrome tailings, will raise £4.5m (R75.78m) through the placing of shares at 3.6p (62.62c) each with institutional investors to advance its projects, it said on Tuesday.

This fund-raising, together with project financing being concluded with RiverFort Group, will enable it to continue to grow globally and represented "a strong vote of confidence in the Jubilee team and our ability to deliver this strategy", CEO Leon Coetzer said.

Jubilee’s shares had gained 9.8% to 67c on the JSE by mid-morning, where they are about 6% lower over 12 months. The company will place 125-million new shares and 62.5-million five-year warrants priced at 6.12p each with two entities, Miton Group plc and an international wealth group, arranged by Veddis.

Coetzer said Jubilee’s growth strategy focused on securing low-risk production from mine waste, diversifying across multiple commodities including platinum, chrome, cobalt, copper, zinc, vanadium and gold, and rehabilitating the environmental legacy of past mining.

Jubilee is currently busy with a due diligence on tailings at Kabwe in Zambia, in partnership with BMR Group, which met these criteria. Tests so far have confirmed the quantity and quality of the material and Jubilee was examining the best processing options for it, Coetzer said. It would announce by February 28 whether it would proceed with a transaction.