Jubilee Metals Group PLC (LON:JLP) today announced that it has entered into an agreement with Eland Platinum Proprietary Limited (“Eland Platinum”), a wholly-owned subsidiary of Northam Platinum Limited.
Highlights
· Agreement executed with Northam to utilise its existing platinum recovery plant for the processing of Jubilee’s PlatCro material
· Northam to fund refurbishment of the platinum recovery circuit
· Jubilee will commence transporting of platinum rich material to Northam from June 2018
· Targeting a minimum processing rate of 60 000 tonnes per month producing an estimated 2 800 PGM ounces per month from February 2019
· Project earnings from the sale of PGM1 concentrate based on a profit share model with Jubilee retaining the majority of earnings
· Jubilee looking to expand its strategic relationship with Northam
1 = Platinum Group Metals (6E platinum, palladium, rhodium, iridium, osmium, and gold)
Leon Coetzer, Jubilee Metals Group PLC Chief Executive commented: “I am pleased to announce our processing agreement with Northam. The structure of the agreement captures the intent of both companies to develop a lucrative partnership in the processing of PGM and chrome rich material. It also opens the door to grow our partnership to engage in similar further opportunities with one of the world’s largest platinum producers.
I am looking forward to working closely with the Northam team as we share our processing capabilities and expertise to maximise value extraction from the PlatCro PGM rich material.”
Processing Agreement
The processing agreement entered into between Jubilee and Eland Platinum Proprietary Limited (“Eland Platinum”), a wholly-owned subsidiary of Northam Platinum Limited, is on the basis that Jubilee will deliver its platinum rich PlatCro material, post chrome removal, to Eland Platinum at an expected rate of 60 000 tonnes per month. All capital costs associated with the refurbishment of Eland Platinum’s platinum recovery plant will be carried by Eland Platinum.
Material shall be delivered to Eland Platinum from June 2018 with the aim of creating a stockpile of approximately 290 000 tonnes of material by end January 2019. It is expected that the Eland Platinum processing plant will commence processing of the Jubilee material from February 2019 at a minimum rate of 60 000 tonnes per month at an agreed fixed processing cost. In return Eland Platinum will acquire the platinum material from Jubilee and recover the contained PGMs at a targeted rate of approximately 2 800 PGM ounces per month, calculating to an estimated monthly project revenue of USD 2.4 million at today’s prices. All earnings generated by the sale of the recovered PGM ounces will be shared at an agreed earning split, with Jubilee retaining a significant majority of the earnings.
