The execution of the mining right is a significant milestone in the development of the project, located in the Limpopo province of South Africa, and adds extra credibility to Jubilee's mine-to-metals strategy.
The timing of the decision by the Department of Mineral Resources is particularly good, Jubilee said, as commodity markets continue to bounce back.
It means the Tjate Platinum Corporation now has the right to mine and process all platinum group metals (PGM), chrome, nickel, copper, gold and various other minerals in the project mining area.
As Tjate’s largest shareholder, this is excellent news for Jubilee, as evidenced by the share price reaction; the shares were up 23% in the first hour of trading.
"The mining right is a major milestone in the development of the project and is in line with the company's mine-to-metals strategy,” said Leon Coetzer, chief executive officer of Jubilee.
“The mining right confirms the significant potential value the project offers to Tjate and contributes to the company's resource portfolio. The timing of the mining right coincides with the continued global recovery supporting the anticipated improvement in the platinum markets,” Coetzer added.
“The Tjate Platinum Project is one of the world's largest undeveloped block of platinum and we look forward to unlock its full potential," Coetzer concluded.