Jubilee Platinum PLC (LON:JLP) has signed a new partnership agreement with Dilokong Chrome Mines for the processing of ore from the Dilokong projects in South Africa.
Jubilee has already reaped substantial rewards from its existing partnership with Dilokong, under the terms of which it processes chromite tailings ore to recover separately chrome and the platinum group elements.
But now its exposure to the upside at Dilokong has been substantially increased as it will enjoy 50% of all chrome benefits from any ore source at the DCM project, not just the tailings.
The agreement secures and extends Jubilee’s sole rights to all PGMs from material at Diloking, irrespective of source. And will provide Jubilee with up to 40,000 tonnes per month of additional ore for an initial 3 year period.
This will more than double the existing operational throughput of the DCM chrome recovery plant and will provide Jubilee with significant additional earnings since the fixed cost remains the same.