Jubilee Platinum has withdrawn its cautionary announcement after its subsidiaries managed to secure access to platinum in shallow chrome reefs.

The explorer had planned to acquire a chrome company, which would have taken it one step closer to becoming a platinum producer.

In a statement, the company said this move, which would have resulted it to draw down on its treasury in cash and shares, was no longer necessary.

A Memorandum of Understanding was signed in April for the acquisition of an operating company with near-surface chrome ore bodies containing platinum group elements (pges).

However, this has been left to expire after Jubilee's subsidiaries Braemore Resources and Maude Mining were able to secure rights to platinum in near-surface chrome ores for both exploration and mining of pges from the Department of Minerals and Resources in South Africa.

The two firms received acceptance for exploration rights to over 60 portions on and around the Bokfontein Farm in the North West province of the country.

Jubilee chief executive officer Leon Coetzer said: "We are very pleased that our subsidiaries have made such progress in securing access to platinum in shallow chrome reefs.

"This negates the need for Jubilee to acquire chrome companies which would have required Jubilee to draw down on our treasury in cash or shares."

Source:

Jubilee Platinum withdraws 'cautionary announcement' (08/07/11)

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