Jubilee Platinum PLC New Partnership Agreement, 3rd Party Ore Agreement (8710P)
September 05 2017 - 6:30AM
UK Regulatory
TIDMJLP
RNS Number : 8710P
Jubilee Platinum PLC
05 September 2017
Jubilee Platinum PLC
Registration number (4459850)
AltX share code: JBL
AIM share code: JLP
ISIN: GB0031852162
("Jubilee" or "Company")
Significant new Partnership Agreement and substantial 3(rd)
Party Ore Agreement
Highlights
Partnership Agreement with Dilokong Chrome Mines ("DCM")
-- The agreement captures the progression of Jubilee's rights at
DCM from an initial zero interest in chrome to now enjoy 50% of all
chrome benefits from any ore source at DCM project
-- The agreement secures and extends Jubilee's sole rights to
all PGMs from material at DCM irrespective of source
3(rd) Party Ore Agreement
-- Jubilee executes the most substantial 3(rd) party ore processing agreement to date at DCM
-- The agreement provides Jubilee with up-to 40 000 tonnes per
month of additional ore for an initial 3 year period
-- This will more than double the existing operational
throughput of the DCM chrome recovery plant
-- The agreement will provide Jubilee with significant
additional earnings since the fixed cost remains the same
-- The additional ore supplies have similar PGM content as
currently processed contributing to the existing PGM stocks at
DCM
-- The agreement is another step in Jubilee's stated intent to
consolidate chrome and platinum retreatment in the region
Leon Coetzer, Chief Executive Officer, says: "I am pleased to
announce the securing of two major agreements in a single
announcement. The agreements bring clarity and certainty to our DCM
relationship and collectively doubles the size of our DCM operation
without forfeiting any PGM rights.
The 3(rd) party ore agreement will contribute significantly to
the earnings of DCM as we more than double our current throughput
without the need to increase existing processing capacities nor
increasing the project's fixed cost component. The agreement will
provide a tolling income to the project in addition to the earnings
generated from current chrome sales at DCM.
We continue discussions with ore suppliers in the region as we
strive to consolidate the processing of material in the
region."
Jubilee is pleased to announce that it has, through its
subsidiary Jubilee Tailings Treatment Company (Pty) Ltd ("JTTC"),
executed a framework, treatment of tailings and chrome ore
agreement with DCM (Pty) Ltd ("DCM") ("Agreement") and a 3(rd)
party ore agreement for the toll-refining of Run of Mine ("ROM")
chrome ore ("Ore Agreement").
The Agreement cancels and supersedes all existing agreements in
respect of chrome processing and PGM recovery at DCM. The Agreement
transforms Jubilee's DCM operations as an equal joint venture with
DCM, on all chrome ore including 3(rd) party chrome ore. The
Agreement now affords Jubilee the right to 50% of all earnings
generated from the processing of chrome ore. This compares with
Jubilee holding no rights to chrome earnings at the outset of the
DCM project. The Agreement further secures Jubilee's unencumbered
PGM rights from all material processed at DCM irrespective of
source.
In addition the Ore Agreement offers a toll processing contract
to Jubilee of up to 40 000 tonnes per month of ROM material. An
initial three year term has been agreed between the parties which
can be extended by mutual agreement. The ROM material will utilize
current DCM plant's spare capacity to more than double current
production rates. Under the terms of the Ore Agreement Jubilee
secures the rights to the PGMs in the ore. The additional PGMs
offer Jubilee the opportunity to expand its PGM recovery strategy
at Dilokong.
Andrew Sarosi, Director of Jubilee, who holds a B.Sc. Metallurgy
and M.Sc. Engineering, University of Witwatersrand and is a member
of the Institute of Materials, Minerals and Mining, is a "qualified
person" as defined under the AIM Rules for Companies and a
competent person under the reporting standards. The technical parts
of this announcement have been prepared under Andrew's supervision
and he has approved the release of this announcement.
5 September 2017
Contacts
Jubilee Platinum plc
Colin Bird/Leon Coetzer
Tel +44 (0) 20 7584 2155 / Tel +27 (0) 11 465 1913
Andrew Sarosi
Tel +44 (0)1752 221937
JSE Sponsor
Sasfin Capital, a division of Sasfin Bank Limited
Sharon Owens
Tel +27 (0)11 809 7500
Nominated Adviser
SPARK Advisory Partners Limited
Sean Wyndham-Quin/Mark Brady
Tel: +44 (0)203 368 3555
Broker
Beaufort Securities Limited
Jon Belliss
Tel: +44 (0) 20 7382 8300
This information is provided by RNS
The company news service from the London Stock Exchange
END
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