LONDON (Alliance News) - Jubilee Metals Group PLC said Wednesday it signed a profit-sharing deal with Northam Platinum Ltd to use its platinum recovery plant in South Africa to process platinum group metals.
The deal - with wholly-owned Northam subsidiary Eland Platinum Holdings Ltd - will see Northam fund the refurbishment of the platinum recovery circuit. After this, Jubilee will begin transporting platinum rich material to Northam from June.
The agreement should see a minimum of 60,000 tonnes being processed per month. From this, Jubilee expects to produce an estimated 2,800 ounces per month of platinum group metals including platinum, palladium, rhodium, iridium, osmium and gold. The estimated monthly revenue based on current prices is USD2.4 million.
Northam and Jubilee will share profits from the sale of platinum group metal concentrate. Jubilee, however, will retain the "majority" of the earnings. No further financial details were specified.
"I am pleased to announce our processing agreement with Northam," Jubilee Chief Executive Officer Leon Coetzer said. "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."
Jubilee is looking to expand its strategic relationship with Northam in the future.
Jubilee Metals (JLP)