The move comes after a major ferrochrome producer exercised its right to sell.
It means that the tailings tonnage available for Jubilee to process now increases significantly. The tailings are a source both of chrome and platinum group metals. Previously Jubilee had only been interested in the PGMs.
The acquisition has the potential significantly to enhance earnings from Inyoni.
The addition of the chrome rights significantly expands, and further transforms the economic value of our Inyoni Operations,” said Leon Coetzer, Jubilee’s chief executive.
“We are already recovering the chrome concentrate at Inyoni, which was previously returned to Hernic, and now will be sold to the market solely for Jubilee's benefit. This addition has the potential to add a further 8,000-to-10,000 tonnes per month of chrome concentrate to our existing chrome operations with no additional risk to Jubilee and the majority of operating costs already being absorbed by the PGM operation.”
Jubilee owns and operates a chrome and PGM processing facility at Inyoni 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.
The consideration for the deal will be majority funded from Jubilee's existing cash and operating cash flows, together with project funding as necessary.