Jubilee Platinum executes $50m project funding agreement

Jubilee Platinum announced on Wednesday that it had executed a $50m project funding agreement in support of its growth strategy for its metals recovery business, through a funding structure provided by RiverFort Capital Group.

The AIM-traded firm said funding would be provided at project-level directly to the Jubilee project subsidiary by RiverFort, with the $50m pre-approved debt funding targeting multiple surface-based metal recovery projects based in established individual project criteria.

It said the funding commitment was for an initial 33-month period, with the flexibility for mutual extension, with the board adding that - in recognition of the funding commitment - RiverFort was also granted the right to exercise a 2.5% maximum preference equity stake in the Jubilee Processing subsidiary.

“The execution of the funding provision is a key enabler towards unlocking a significant portion of the very large global potential that exists in the reprocessing of surface materials,” saic CEO Leon Coetzer.

“The metals contained in these various surface stocks have no mining costs attached to their recovery and offer the potential of significant return on investment.”

Going forward, Jubilee said the project funding was structured at project-level to minimise dilution and enhance shareholder value, adding that it was now set to accelerate its expansion into the extraction of metals not recovered at the first processing path, reaping “significant benefit”.

Jubilee said it was aiming to capitalise on its internally developed and “proven process excellence”, with the combination of secured funding and a proven track record securing Jubilee in “pole position” in the reprocessing arena.

“The key to unlocking this potential, is the combination of our specialists' team with our historical expertise in metals extraction technology,” Leon Coetzer added.

“This enables us to implement suitable mineral and metal extraction solutions through the use of state-of-the-art, environmentally friendly and sustainable technologies, for which Jubilee Processing is renowned.

“We have identified a significant pipeline of these resources with cash generative potential and we are carefully ranking these projects to pursue them in the short term.”