09 Oct Toll processing tailings agreement
Jubilee enters Memorandum of Understanding (“MOU”) for toll processing Dilokong Chrome Mine’s Platinum-Bearing Tailings
Jubilee, the AIM and JSE quoted mine to metal specialist, is pleased to report that its newly formed subsidiary company Pollux Investment Holdings (Pty) Ltd (“Pollux”)* has entered into a binding and exclusive MOU with Phokathaba Platinum (Pty) Ltd, (“Phokathaba”) a South African subsidiary platinum mining company of Australian Stock Exchange listed Platinum Australia Ltd (“PlatAust”) to toll process the 800,000 tonnes of Dilokong Chrome Mine platinum-bearing tailings (“Dilokong Tailings”) using Phokathaba’s concentrator (“Phokathaba Concentrator”) on PlatAust’s Smokey Hills mine in the Eastern Bushveld. As announced on 13 June 2012 Jubilee was awarded the right to recover the platinum group metals (“PGMs”) contained in the Dilokong Tailings.
*Pollux to be renamed Jubilee Tailings Treatment Company (“JTTC”).
- Jubilee secures access to existing processing capacity to accelerate the production of its own platinum concentrates for smelting in its exclusive ConRoast process;
- This MOU opens the door to explore further opportunities between the two companies that are in line with Jubilee’s Mine to Metals strategy;
- Under the MOU, Phokathaba has committed the capacity of its Phokathaba Concentrator to process, on a toll fee basis, the Dilokong Tailings to recover its contained PGMs to concentrate;
- The Company will be targeting a tailings processing rate of up to 50,000 tonnes per month.
- The MOU is subject to final due diligence by Jubilee, the approval of PlatAust’s senior finance provider and, to the extent, necessary regulatory approvals. The parties have agreed to a time line of 45 days to satisfy the conditions precedent.
Leon Coetzer, CEO of Jubilee Platinum, commented:
“The MOU signals Jubilee’s bold steps toward achieving its goal of producing platinum concentrates for processing in its Middelburg facilities in the very near term, further bolstering Jubilee’s earnings growth profile. This MOU enables Jubilee to accelerate bringing to production its own high-chrome platinum concentrate for minimal capital investment, allowing Jubilee to leverage off its exclusive ConRoast process. The MOU endorses the Company’s strategy to acquire in the short to near-term, surface stocks of platinum-bearing waste materials.”
Further details of the transaction will be announced later
Jubilee Platinum plc
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