Companies: JLP   

Jubilee Platinum is launching an £11 million placing at 89p for a bankable feasibility study of its promising Tjate project.

The AIM-quoted company, headed by the dogged Colin Bird and advised by Investec, is offering the shares both on AIM and the Johannesburg market, where its shares are jointly listed. Proceeds from the placing, equivalent to nearly 15 per cent of Jubilee's present capital, will mostly go to the feasibility study in which the company will hope to take Tjate in South Africa's Bushveld into production.

Bird has been encouraged by recent drilling results at Tjate. These have shown grades ranging from one metre at 4.09 grammes of platinum group metals (PGMs) plus gold and 2.57 grammes of platinum alone per tonne of ore to 4.36 metres at 10.06 grammes of PGMs plus gold and 6.11 grammes of platinum alone per tonne of ore.

Jubilee also has interests in Madagascar, where Bird has spoken of 'superb' results from the company's Ambodilafa nickel and copper project. Floated five years ago at 16p and recommended by Growth Company Investor at 26p in 2005 and again at 66.25p last December, Jubilee shares hit 127.5p last June and now trade at 93.5p, up 2.5p this morning, valuing the company at £80.4 million.

Longer term, there could be scope for further growth if Tjate and the Madagascan projects bear out present expectations.

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Jubilee Platinum	AIM	£12.56m	11.50p	-0.50p
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