Jubilee Platinum PLC (LON:JLP) has unveiled a new joint venture tie-up with BMR Group PLC (LON:BMR) in which the partners will target the recovery of lead, zinc and vanadium at the Kabwe project in Zambia.
A joint venture agreement sees the partners pool their resources to ‘bring the project to account’, with the companies aiming to deliver commercial production of lead and zinc in 2018, Jubilee said in a statement.
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Jubilee has the right to earn into the Kabwe project via phased debt funding, with the initial phase seeing it secure a 15% stake in return for £300,000 of funding – its stake can subsequently rise to 30% for a further £1mln of funding and in Phase 3 it can increase up to 40% with the provision of another £1mln.
“This transaction is in line with our mission to take our brand and expertise across country borders and commodities,” said Leon Coetzer, Jubilee's chief executive.
“This project is meaningful in scope, diversity and potential contribution to the Company's earnings. The Kabwe project offers immediate unencumbered access to a large surface stock rich in lead, zinc and vanadium created from historical mining and processing activities.”
Coetzer added: “The Jubilee team's expertise and ability is perfectly suited to the project and strongly complements the existing BMR project team to extract maximum value from the metals contained in the various surface discards and I look forward to working with the BMR team to bring this project into being.
“In entering into this agreement, we are acutely aware of the significant further opportunities presented within Zambia and will be actively exploring these opportunities."