UK-based Jubilee Platinum and its subsidiary Jubilee Processing have completed the project funding for the execution and commissioning of its two surface platinum processing projects in South Africa.
The funding consists of a combination of senior secured debt to a maximum of $10m, unsecured debt to a maximum of $5m and an equity placing of GBP2.5m ($3.6m).
Using the package, Jubilee will be able to execute the two projects simultaneously targeting the processing of 80 000t per month of surface material.
The company can also pursue the acquisition or secure further surface or shallow platinum-bearing opportunities.
“The project funding structure combines both debt and equity, recognising the future profitability of the projects while securing funding to pursue further such surface or near surface platinum opportunities,” says Leon Coetzer, Jubilee Platinum Chief Executive Officer.
“The successful funding demonstrates the confidence of investors in Jubilee’s robust business model.”
Together, the two projects target an annual design capacity for the recovery of about 33 000oz of platinum group metals.
The second project is targeted for ramp-up by December 2016 and will complement the first project’s processing capacity of 25 000t per month of feed.
Jubilee said that the chromite recovery section of the first project is already commissioned and operational completely.
The unsecured debt will provide Jubilee’s Processing Subsidiary with access to funding of another $5m to provide working capital during the ramp-up of the second project.
The debt will be staggered over two equal tranches with the final tranche scheduled for February 2017.