Resources trust in £0.6m Jubilee deal
Article Date: Jul 31 2002Shares in Aim newcomer Jubilee Platinum, have risen 12 per cent to 19.5p on their first morning's trading after raising £2.2 million of a target £3 million and agreeing a share swap with Resources Investment Trust valued at £650,000 at a notional 16p a share. Robert Tyerman reports.
As reported here on 26 June, Colin Bird, director of Lion Capital and adviser to Ofex-traded Franconia Minerals, has brought Jubilee to Aim under the chairmanship of Steven Kearny, former chief executive of mining giant Impala Platinum. Bird is optimistic about Jubilee's platinum group metal prospects in South Africa, Madagascar and Canada and its options on projects in Sierra Leone and Ethiopia (one with entrepreneur Malcolm Burne's Aim-listed Golden Prospect (GOL)).
Jubilee's share swap with Resources Investment Trust (REI) has been done at a price of 104.85p a share for RIT. That is the trust's claimed net asset value as at 22 July – rather than its market price, which languishes at 68.5p.
RIT has by this means obtained a bigger chunk of Jubilee than its market price would have obtained for it. Steered by fund manager David Hutchins and financier Willie West, RIT has several other projects in hand, as well.
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