Jubilee Metals receives R1.6 billion offer for its South African chrome and PGM operations

JUBILEE Metals, a diversified metals producer with operations in South Africa and Zambia, has received a conditional binding offer from a private mining and metals trading company to acquire the group's chrome and platinum group metals (PGM) operations in South Africa for a consideration of up to $90 million (R1.6 billion).

- PHILIPPA LARKIN

The shares leapt 4.17% to R1.00 on Thursday morning on the JSE as investors welcomed the news.

The offer allows Jubilee to sharpen its focus on expanding its copper strategy in Zambia while retaining exposure to the PGM market through its Tjate Platinum mining project.

Under the terms of the offer, Jubilee will retain all current rights to the Tjate Platinum mining project offering Jubilee continued exposure to the potential upside of the PGM market, while focusing to further advance the Company's copper strategy in Zambia.

The total consideration of up to $90m is payable through a combination of cash upfront and deferred cash payments over an approximate three year period.

Jubilee's board has reviewed the offer and recognises its compelling value proposition. The company is also evaluating its dividend policy to potentially enable future distributions to shareholders. A detailed shareholder circular outlining the transaction will be issued soon.