Meanwhile, Platinum Australia (ASX: PLA) is in advanced...

Meanwhile, Platinum Australia (ASX: PLA) is in advanced discussions with Jubilee Platinum regarding a proposed merger via a scheme of arrangement under which Jubilee would acquire all of the shares in Platinum.

If it goes ahead, the merger would create a mining group with the potential to become one of the world’s top five platinum producers.

The combined company could restart mining operations at Platinum’s Smokey Hills Mine and bring the operation into production in the second half of 2013, ramping up to 70,000 ounces per annum of platinum group metals in 2014.

Platinum and Jubilee previously executed an agreement under which Jubilee will use Platinum’s Smokey Hills Mine concentrator to process platinum-bearing tailings from the Dilokong Mine in South Africa.

This agreement will accelerate processing of the Dilokong tailings by some 14 months to commence during the first half of 2013.

With the exception of the Tjate Platinum project – Jubilee’s prime asset in South Africa, the combined projects are near term with relatively low capital requirements.

The combined group plans to grow its earnings profile from cash generated by its own operations.


http://www.proactiveinvestors.com.au/companies/news/39347/why-platinum-has-soared-to-17-month-high-outflanks-gold-39347.html