Jubilee Platinum said Monday it has executed transactional agreements to acquire Platinum Australia (PLA).

Under the deal, PLA shareholders will be offered one Jubilee share for every 2.593 PLA shares held.

The transaction will pool together assets to form an enlarged group with a stronger portfolio.

Jubilee said the enlarged group will result in a significant South African platinum group metals producer supported by strong prospects for expansion through the development of its near surface resources.

It will have a 63% shareholding in the Tjate project, one of the largest undeveloped platinum resources in South Africa.

"Jubilee has always been clear on its mission to form a fully integrated mine-to-metals company by combining world class platinum exploration assets with operational mines and refining processes," Chief Executive Leon Coetzer said.

"This transaction is driven both by the quality of assets that are merged to form such an integrated company as well as the opportunity offered to Jubilee shareholders in acquiring the assets at such favourable terms.

"The enlarged group offers significant value to both Jubilee and PLA shareholders in the formation of a uniquely positioned platinum mining and processing company."

Shares fell 2.20% to 11.12p at 09:42 Monday.

RD

Related share prices
Jubilee Platinum (JLP) share price