Jubilee Metals Group PLC said Oct. 24 that it entered an agreement to acquire rights to all earnings from platinum group metals recovered from the Hernic tailings project in South Africa.
Jubilee said it will use its own cash to settle the US$5.1 million payment for the PGM earnings rights.
Jubilee earlier struck a deal with Hernic Ferrochrome (Pty) Ltd. giving Jubilee the rights to all PGM earnings until it secured a 30% return on investment. After that, Hernic Ferrochrome, which has control of the site's chrome concentrate output, would secure the majority of the PGM earnings.
But the agreement was terminated as Hernic Ferrochrome is now being acquired by K2018239983 (SOUTH AFRICA) (Pty) Ltd., a unit of a South African ferrochrome producer.
With the new deal, the company said that it now has the rights to the unprocessed 1.70 million tonnes of historical tailings, 630,000 tonnes of previously processed tailings, and a further 1 Mt of PGM rich material, which may be processed by its Windsor project.
After taking control of the operation, which will be renamed as Inyoni, the company aims to increase the feed rate to 50,000 tonnes per month.
In addition, Jubilee also entered an exclusive agreement granting K2018239983 an option to sell to the company all further chrome rights from the tailings. If the option is exercised, the company said its existing production may rise by 8,000 tonnes to 10,000 tonnes of chrome concentrate.