(Alliance News) - Jubilee Metals Group PLC said Thursday it has signed several deals to progress its operations at the Windsor chrome plant in South Africa.
The first deal was a run-of-mine chrome ore offtake agreement, in which Jubilee has committed to produce 40,000 tonnes per month of chrome concentrate from Windsor for the next three years.
Jubilee Metals did not disclose with whom it had signed the offtake agreement.
The agreement will secure the supply of quality feed to Windsor and supports 100% operating capacity for the targeted period, it said, while continuing to provide discarded material to Jubilee's other platinum group metals recovery plants.
Jubilee has also entered a joint venture agreement with an unnamed South African company to secure the rights to 35,000 tonnes per month of chrome processing capacity at the Windsor 8 facility.
Under the agreement to Jubilee will take control of the operational control of the Windsor 8 facility through a joint venture under which Jubilee will hold the rights to 70% of all earnings generated as its manager.
Production is expected to start at Windsor 8 by the end of September.
"Jubilee continues to aggressively drive its expansion across both its South African and Zambian operations. Our significant progress in Zambia, as announced last week, is followed by the successful implementation of these two key agreements supporting the expansion of our South African chrome and PGM operations. These agreements have been secured on the back of Jubilee's track record of continuously driving to set new industry standards," said Chief Executive Officer Leon Coetzer.
Shares in Jubilee Metals were up 2.3% at 5.42 pence on Thursday in London, while its Johannesburg shares were 4.4% higher at ZAR1.41.
By Dayo Laniyan; email@example.com
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