Deal with YA Global is to fund planned acquisition of mining projects
By Devika Patel
Knoxville, Tenn., March 15 - Jubilee Platinum plc said it negotiated a two-year standby equity distribution agreement with YA Global Master SPV Ltd. The offering may raise a total of £15 million.
The company will sell up to £15 million in ordinary shares to YA Global at a 4% discount to the prevailing market price during the 10-day pricing period of a drawdown.
The maximum advance that may be requested is 200% of the average daily trading volume of the shares multiplied by the volume-weighted average price of the shares for each of the 10 trading days prior to the drawdown request or £2 million, whichever is lower. The facility may only be drawn down once every 10 days.
Proceeds will be used to seek acquisition opportunities in near-term mining projects.
"We are delighted to be announcing this standby arrangement for funds of up to £15 million," chief executive officer Leon Coetzer said in a press release. "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.
"This facility means Jubilee can acquire suitable targets without recourse to current cash, which is allocated for our on-going Middelburg smelter expansion and project development plans," Coetzer said.
Based in London, Jubilee is a mining exploration and development company with a focus on platinum group metal and nickel/copper.
| Issuer: | Jubilee Platinum plc
|
| Issue: | Standby equity distribution agreement
|
| Amount: | £15 million
|
| Tenor: | Two years
|
| Price: | 4% discount
|
| Warrants: | No
|
| Investor: | YA Global Master SPV Ltd.
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| Pricing date: | March 15
|
| Stock symbol: | London: JLP
|
| Stock price: | 26.6p at close March 15
|
| Market capitalization: | £71.57 million
|
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