Jubilee Platinum has made an offer for the entire issued share capital of Braemore Resources, it was confirmed yesterday (15th September).

The platinum junior is proposing a deal that would price one of its own shares at the same value as 15,818 shares currently held by stakeholders in Braemore.

As part of the agreement, Braemore - which is currently commercialising its ConRoast smelting technology - would be removed from the JSE and London's AIM exchange.

The nickel and platinum producer would become a wholly-owned subsidiary of Jubilee if the deal is accepted, with its shareholders holding about 30 per cent of the new entity.

A company statement read: "The board of directors of Braemore recommends that Braemore shareholders vote in favour of the scheme."

Braemore, which will meet on 7th October to discuss the all-share offer, has appointed Venmyn Rand to act as its independent advisor on the potential partnership.

According to reports, Jubilee would contribute R7 million towards Braemore's operating costs, while also providing a R25 million injection to help clear its debts.

Outstanding payments include an R18 million agreement with Mintek in relation to the ConRoast technology, which must be settled by the end of the month.

The transaction - which would see 50 million new shares issued - could be followed by a capital raising push in order to fund a concentrator and refinery for the new firm.

Sources:

Braemore advises shareholders to accept Jubilee offer (14/09/09)

Jubilee makes bid for all of Braemore (15/09/09)

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