Jubilee Platinum has entered an agreement with the New Africa Mining Fund and black-owned firm K-Plats to form a new South African subsidiary.

Under the terms of the deal, Jubilee will transfer its South African interests - Maude Mining & Exploration and Dullstroom Plats - to the new firm, Jubilee Platinum SA, according to reports by Bloomberg.

The deal has been agreed to help satisfy proposed legislation in South Africa designed to boost black participation in the mining industry.

The New Africa Mining Fund, established to provide financial support to small mining companies, will loan the new subsidiary $1.7 million and acquire a ten per cent stake in the firm, which can later be converted into shares in the parent company, Jubilee Platinum.

London-listed Jubilee Platinum currently has six prospecting licences for areas on the western limb of the Bushveld Complex.

Jubilee's subsidiary Dullstroom Plats, in association with K-Plats, has also applied for prospecting permits for a number of properties in the eastern Bushveld Complex.