Jubilee Platinum receives offer for Quartzill assets

4th Oct 2011 12:31

Tjate Platinum, a company in which platinum miner Jubilee is a shareholder, has received a formal offer from a major mining company to acquire Tjate's quartzill farm for £5.95m in cash. The quartzhill farm, which is a portion of Tjates platinum project, has not been drilled and is not included in Tjate's long-term mining plans. Jubilee believes that the offer from a major minor endorses its original decision to earn-in into Tjate. In a statement, Jubilee gave three reasons for recommending the offer to its shareholders: "Firstly, Quartzhill lies outside of the centre of gravity of Tjate's projected first mine area and therefore costs of mining this block could be potentially prohibitive."Secondly, Quartzhill's platinum reefs are deeper than those targeted on Dsjate....Lastly, Quartzhill has not been drilled and therefore is not included either in Tjate's long-term mining plan." Other than the cash that Tjate would receive as a result of this offer, the effect of the transaction on the value of the assets of Jubilee is not considered material, the group said. Colin Bird Chairman of Jubilee said: "This cash offer gives Jubilee and all the Tjate shareholders the potential to monetise, in the short term, a very long-term and therefore non-core asset. Further, the Offer is a credibility endorsement of the Company's original decision to earn-in into Tjate." The share price fell 3.09% to 11.75p by 12:48.NR