Aim- and AltX-listed Jubilee Metals Group has entered into a framework and tailings purchase agreement with a subsidiary of a South African ferrochrome producer, to acquire 100% of the rights to platinum group metals (PGM) earnings from the current and future tailings produced at Jubilee’s Hernic project in the Bushveld Complex, in South Africa.
In addition to the current unprocessed 1.70-million tonnes of historical tailings at the Hernic operations and the 630 000 t of previously processed tailings, Jubilee has acquired the rights to a further one-million tonnes of PGM-rich material.
The total consideration for all the PGMs contained in the historical tailings is about $5.1-million and will be settled from Jubilee’s cash resources.
Jubilee has also entered into an exclusive agreement with the subsidiary, whereby the subsidiary may elect to include the sale of all further chrome rights to the chrome contained in all of the current tailings at Hernic at a predetermined value.
“I am delighted to have secured this transaction with [the subsidiary] which essentially transforms Jubilee from processing joint venture partner to owner of the surface tailings and associated chrome and PGM recovery operations.
“The transaction extends our rights to 100% of PGM earnings from current and future tailings at a time when the project is delivering record earnings reaching £1.41-million for the month of September on the back of improved operational efficiencies and buoyant PGM basket metal prices,” commented Jubilee CEO Leon Coetzer.