Dec. 14 (Bloomberg) -- Jubilee Platinum Plc said it’s in advanced talks to combine with Platinum Australia Ltd. and link operations in South Africa.
The merger would be implemented through a so-called scheme of arrangement, it said in a statement. Jubilee expects to reopen Platinum Australia’s Smokey Hills mine in the second half of 2013 at a rate of 70,000 ounces of platinum group metals a year.
The shares of Jubilee jumped 22 percent to 9.125 pence in London, the highest in two months. It was their biggest gain in 11 months.
Jubilee has a market value of 29 million pounds ($47 million). Perth-based Platinum Australia appointed administrator Pitcher Partners in June, stating it had been experiencing operational problems at the Smokey Hills for some time. In October, the administrators said the company had received multiple offers to acquire some or all of its assets.
To contact the reporter on this story: Jesse Riseborough in London at email@example.com
To contact the editor responsible for this story: John Viljoen at firstname.lastname@example.org