South African platinum junior Jubilee announced today (3rd July) that it intends to make a firm offer for Braemore Resources.

The company revealed that it would secure all the shares in Braemore through an equity-only transaction, issuing one new Jubilee share for every 15,818 shares in Braemore.

As a result, Braemore shareholders would effectively assume a 30 per cent pre-capital raising interest in the new entity, which is designed to become an emerging pgm producer.

Braemore explained in a media release that the resulting company would have "total capability" to handle exploration, mining, dump re-treatment, processing and metal sales.

"The enlarged entity has the potential to become a sustainable force in the South African platinum industry with significant pgm production and thus will be well positioned to participate in any further consolidation in the platinum industry," it said.

In addition, Jubilee has agreed to fund Braemore's operating costs while the offer is implemented, up to a cumulative maximum of R7 million on a drawdown basis.

Subject to the completion of the deal, Jubilee will also settle some of its target's current liabilities - up to a cumulative maximum of R25 million - and the R18 million it owes to Mintek.

Braemore is currently focusing on nickel production in Australia and nickel and platinum projects in South Africa.

Sources:

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

Joint announcement of a firm intention by Jubilee to make an offer to acquire the entire issued and to be issued share capital of Braemore and withdrawal of Braemore cautionary announcement (03/07/09)

Jubilee Platinum stuns market with all share offer for Braemore Resources (03/07/09)

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