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(Alliance News) - Jubilee Metals Group PLC said Tuesday it has exercised its rights to acquire all chrome rights at the Inyoni operations for USD16.4 million.
The Inyoni operations are a part of Hernic project in South Africa.
Following the acquisition, the historical tailings available to the Johannesburg and London-listed metals processing firm will increase by 1.7 million tonnes of tailings at Inyoni, 630,000 tonnes of previously processed tailings and a further 1.0 million tonnes of platinum group metals-rich material.
The acquisition of chrome rights has the potential to enhance earnings significantly from Jubliee's Inyoni operations, which previously returned its saleable chrome concentrate to Hernic.
In late October, Jubilee entered a USD5.1 million agreement with K2018239983 South Africa Pty Ltd, which would see it acquire 100% of PGM earnings from the Hernic project.
"The addition of the chrome rights significantly expands, and further transforms the economic value of our Inyoni Operations. 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," said Chief Executive Officer Leon Coetzer.
"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," Coetzer added.
Shares in Jubilee Metals - which is headquartered in London - remained flat in Johannesburg at ZAR0.90, while its London shares were up 0.9% at 4.54 pence on Tuesday.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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