The AIM-listed miner said the agreement involves Northam funding the refurbishment of its platinum recovery circuit, including an existing recovery plant, to which Jubilee would begin transporting platinum rich material for processing from June 2018.
Processing will target a minimum rate of 60,000 tonnes per month of platinum rich PlatCro material at a fixed processing cost, producing an estimated 2,800 ounces of platinum group metals (PGM) per month from February 2019.
Jubilee added that revenue from the sale of PGM concentrate, estimated at around US$2.4mln per month at current commodity prices, would be shared in an agreed earning split, in which the group said it would retain a “significant majority of the earnings”.
Leon Coetzer, Jubilee Metals' chief executive, said: "I am pleased to announce our processing agreement with Northam. The structure of the agreement captures the intent of both companies to develop a lucrative partnership in the processing of PGM and chrome rich material. It also opens the door to grow our partnership to engage in similar further opportunities with one of the world's largest platinum producers.”