Jubilee Platinum (LON:JLP) has kicked off construction of a processing facility in South Africa under the ASA deal, which targets commissioning as early as January next year.
As reported previously, the firm has a deal concerning ASA Metal’s Dilokong chrome mine.
The mining group also has an agreement with the fourth largest ferrochrome producer in the world - Hernic.
With regard to the ASA project, a deal was struck in September this year, whereby if Jubilee accelerated construction to target commissioning of the chrome beneficiation section by the end of January, it will be paid up to 25% more for every ton of chrome concentrate produced.
The project targets processing 30 000 tonnes per month of platinum-containing surface material.
"The company projects that it will be able to commission the initial processing step of the overall Platinum Processing Project up to five months earlier than first anticipated, thereby resulting in earlier-than-planned cash flows from this first of the Platinum Processing Projects," it said today.
Total projected capex for the project is estimated at £4.9 million (ZAR 105 million) of which £1.1 million (ZAR 23.6 million) has been committed towards the construction and commissioning of the Initial Processing Step," the company said.
Jubilee's two platinum surface processing projects target a combined processing of 80,000 tonnes per month of tailings with an estimated production of 42 000 ounces of platinum group metals per year in concentrate.
Jubilee shares eased today 2.7% to 3.6p each.