Breaking News - MOU with Jubilee Platinum now unconditional...

Breaking News - MOU with Jubilee Platinum now unconditional 21/11/2012

Looks to me as though Macquarie Bank still sees value here. PLA now has income coming in and the Smokey Hills Mill is going to be operated/maintained.

I expect we'll see an announcement from the administrator soon?

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Jubilee Platinum agrees deal with Phokathaba Platinum.

http://www.jubileeplatinum.com/investors-and-media/announcements/2012/download/announcement-mou-toll-processing-and-dilokong-execution-agreements.pdf

The previously announced memorandum of understanding (“MOU”) for toll processing of Material to recover PGE concentrates is now unconditional.

Leon Coetzer, CEO of Jubilee Platinum, commented: “This is a major milestone for Jubilee. We will be the only junior platinum company that can process tailings to produce a concentrate, which we can smelt using our unique ConRoast process. We are delighted to have entered into this MOU with Platinum Australia regarding the use of their concentrator and that Macquarie Bank has given its support for the transaction. The MOU allows Jubilee to commence processing the Material without requiring significant capital to establish a dedicated processing plant.

Toll Processing of Material
Jubilee has entered into binding and exclusive MOU between that Jubilee’s subsidiary Pollux Investment Holdings (Pty) Ltd (“Pollux”) and Phokathaba (Pty) Ltd (“Phokathaba”) (together the “Parties”) –announced 9 October 2012 – to utilise the Concentrator for the toll processing of the Material to recover PGE concentrates. The MOU is now unconditional having received approval from Phokathaba’s senior debt provider – Macquarie Bank Limited.

Key terms of the MOU:
? Phokathaba will commit the full capacity of the Concentrator to Pollux for the processing of Material for a minimum period of 8 months (“Exclusivity Period”), the Exclusivity Period will commence 30 (thirty) days after the Effective Date of this MOU - being 08 November 2012, during which period the Parties will conclude the Phokathaba Agreement and due diligence.

? In the event that Phokathaba is able to continue operating exclusively on the Material supplied by Pollux post the Exclusivity Period, the Parties may jointly agree to extend the Exclusivity Period and conditions.

? Pollux will be responsible for delivering the Material to the Phokathaba Concentrator.

? Phokathaba will be responsible for the processing of the Material.

? Phokathaba will deliver both a filtered PGE concentrate to Pollux as well as any recovered Chromite concentrate.