Jubilee Metals Group - Acquisition at Hernic: Transforming Operations
("Jubilee" or "the Company")
Registration number (4459850)
AltX share code: JBL
AIM share code: JLP
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR)
Acquisition at Hernic of 100% PGM Earnings: Transforming Operations
á Agreement with NewCo, the world's largest Ferrochrome producer, to extend Jubilee's rights to 100% of all PGM earnings from current and future tailings at Hernic, gaining full control of the large-scale operations
á Agreement transforms Jubilee's Hernic operations from a contracting joint venture partner to 100% owner of the economic rights without additional risk to the Company
á Acquires all rights to a further circa. one million tonnes of PGM rich material located close to its
á By gaining full control of the operation, has the opportunity to increase throughput, further optimising certain aspects of the operation and enhancing earnings significantly
á Enters into a further exclusive agreement with NewCo whereby under NewCo's election Jubilee may also acquire all chrome rights to the chrome contained in the current tailings at Hernic offering significant further earnings upside to the project
Leon Coetzer, Chief Executive Officer, says: "I am delighted to have secured this transaction with NewCo which essentially transforms Jubilee from processing joint venture partner to owner of the surface tailings and associated chrome and PGM recovery operations. We could not have asked for a better partner for our ongoing operations than a company that forms part of the largest ferrochrome producer in South Africa. Our highly successful
"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
"The transaction includes significant further PGM rich material at surface to be immediately processed via our Windsor PGM project. The option to add the chrome rights to our project holds the potential to significantly increase the earnings of the project, currently all chrome concentrate produced by our project is returned to Hernic for its own use or sale to the market. If implemented the option could add a further 8 000 to 10 000 tonnes of chrome concentrate to Jubilee's existing chrome production.
"This agreement is yet another significant milestone in our on-going development strategy to grow and diversify our earnings base. We continue to make exceptional progress across the portfolio which I look forward to updating shareholders on in due course."
Jubilee owns and operates a chrome and PGM processing facility at Hernic with a processing capacity of 55,000 tonnes per month. The facility currently produces up to 9,000 tonnes of saleable chrome concentrate and 2,250 ounces of PGMs per month.
Previously, Jubilee had a Co-Operation Agreement ("Hernic Agreement") with
Under the Tailings Agreement, Jubilee:
a) has acquired 100% of all rights to the PGM earnings from current tailings produced at Hernic;
b) will acquire 100% of all rights to the PGM earnings from future tailings produced at Hernic;
c) has acquired all rights to a further c.1 million tonnes of PGM rich material located close to the Company's Windsor chrome operations and previously held by Hernic Ferrochrome; and
d) has further entered into an exclusive arrangement whereby Jubilee may acquire all further chrome rights to the chrome contained in all of the current tailings at Hernic.
In addition, Jubilee has increased the scope of its Hernic operations to take control of the re-mining of tailings to control the feed supply of its Hernic Operations, targeting to increase feed rate to 50,000 tonnes per month.
Going forward, operations at Hernic will be renamed and referred to as Inyoni.
For further information visit www.jubileemetalsgroup.com, follow Jubilee on Twitter (@Jubilee Metals) or contact:
Colin Bird/Leon Coetzer
Tel +44 (0) 20 7584 2155 / Tel +27 (0) 11 465 1913
Nominated Adviser -
Andrew Emmott/Vassil Kirtchev
Tel: +44 (0) 20 3368 3555
Damon Heath/Erik Woolgar
Tel +44 (0) 20 7186 9900
Joint Broker Ð WHIreland
Harry Ansell/Katy Mitchell
Tel: +44 (0) 20 7220 1670/+44 (0) 113 394 6618
JSE Sponsor -
Tel +27 (0) 11 809 7500
PR & IR Adviser -
Catherine Leftley/Beth Melluish
Tel +44 (0) 20 7236 1177
This information is provided by RNS, the news service of the
Quick facts: Jubilee Metals Group
Market Cap: £128.78 m
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