(Alliance News) - Jubilee Metals Group PLC on Thursday said it has entered into a USD5.1 million purchase agreement which will see it acquire 100% of platinum group metal earnings generated from the Hernic project in South Africa.
The agreement with K2018239983 South Africa Pty Ltd will see Jubilee gain full control of the operation, allowing it to increase throughput at the facility.
Chief Executive Leon Coetzer said: "The transaction extends our rights to 100% of PGM earnings from current and future tailings at a time when the project is delivering record earnings reaching GBP 1.41 million for the month of September 2019 on the back of improved operational efficiencies and buoyant PGM basket metal prices. Under the previous agreement this would have brought forward the point at which the majority of earnings would be due to Hernic, Jubilee having reached a 30% return on investment."
Shares in Jubilee closed 14% higher at 4.20 pence each in London on Thursday. In Johannesburg, it ended the day 5.6% higher at ZAR0.76.
By Eric Cunha; ericcunha@alliancenews.com
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Jubilee Metals (JLP)