Jubilee Platinum's attempted takeover of Braemore Resources moved a step closer on Wednesday (7th October) after its target's shareholders approved the all-share offer.

The platinum company has proposed a deal that values one of its shares at the same price as every 15,818 shares in Johannesburg Stock Exchange (JSE) listed firm Braemore.

Although shareholders have given the bid the green light, the transaction must still meet a range of criteria - including a court approval - in order to be completed successfully.

Nevertheless, Braemore revealed that trading in its shares will be suspended on the JSE from 9th November, with a similar approach taken on Aim one day after the deal is finalised.

Under the terms of the agreement, Braemore would become a wholly-owned subsidiary of Jubilee, while its shareholders would own 30 per cent of the new company.

Jubilee Platinum currently holds a 63 per cent beneficial interest in the Tjate project, which is located on the eastern limb of the Bushveld Complex and is believed to contain about 65 million ounces pgm 3E (platinum, palladium, rhodium) and gold.

Sources:

Braemore shareholders approve Jubilee deal (07/10/09)

Jubilee set to make firm offer for Braemore Resources (03/07/09)

Jubilee makes all-share offer for Braemore Resources (16/09/09)

© Adfero Ltd