Jubilee defers payment date for non-core asset disposal

19th Jun 2013 08:41

AIM-listed mine-to-metals specialist Jubilee Platinum has given an extension to Global Renewal Energy (GRE) for the second payment due on its disposal of two of non-core assets.The deferral relates to a sale of shares agreement with GRE earlier this year through which it would acquire the issued share capital of Jubilee Smelting and Refining (JSR), a wholly-owned subsidiary of Jubilee Platinum and 70% of the issued share capital of Power Alt(PowerAlt), also owned by Jubilee Platinum, for an aggregate cash consideration of $14m.Jubilee Platinum said that the transaction could executed over two tranches, namely through a disposal which included the sale of 65% of the issued share capital of JSR and 40% of the issued share capital of PowerAlt and an option whereby Jubilee would retain an exclusive put option for the remaining share capital held by the company.It said that consideration for the disposal comprised a non-refundable deposit payment of $200,000, which had been received by Jubilee, plus an amount of $8.87m which was due to be paid on or before June 14th 2013. Jubilee said that the second payment had not been made by the due date and, at GRE's request, Jubilee and GRE had agreed the deferral of the second payment date to a date no later than July 31st 2013, with an initial extension granted until July 1st 2013.Leon Coetzer, Chief Executive Officer of Jubilee Platinum, commented: "Jubilee has agreed to the extension of the second payment based on the additional funding to be provided by GRE and their continued commitment to fund the upgrade of the furnace off-gas system to increase the production of the smelting complex." He said that the interim funding structure would ensure that all short-term funding for both working capital as well as upgrades to the operation would be funded by GRE until the Second Payment had been received.Jubilee Platinum's share price was down 4.26% to 5.62p at 08:34 on Wednesday.MF