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Jubilee agrees funding for DCM start-up

By BFN News | 07:52 AM | Monday 28 October, 2013

Jubilee Platinum has reached a key milestone in the start of processing of the platinum-bearing Dilokong chrome mine tailings by concluding a funding arrangement to meet the working capital requirement. Jubilee is targeting to commence processing within the next three months based on expected time lines to re-commission the processing plant. The funding arrangement includes both debt and equity. The debt component was secured following due diligence by the investor on the earnings potential of the processing of the DCM tailings, which allowed Jubilee to reduce the equity funding requirement. The funding arrangement includes a debt offering of $10m, of which Jubilee will initially only access $750,000, the amount required to commence processing of the DCM tailings. As part of the funding arrangements, Jubilee has entered into a subscription agreement with YA Global Master SPV Ltd, whereby YAGM will subscribe for 14,204,544 new ordinary shares in the company at a price of £0.044 per share raising £625,000 Under the terms of the loan, Jubilee is obliged to pay YAGM a facility fee of US$50,000, which Jubilee has elected to satisfy by the issue of 700,322 ordinary shares. Story provided by

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