TIDMJLP
RNS Number : 8940W
Jubilee Metals Group PLC
24 August 2020
Jubilee Metals Group PLC
Registration number (4459850)
Altx share code: JBL
AIM share code: JLP
ISIN: GB0031852162
("Jubilee" or "the Company" or "the Group")
Dissemination of a Regulatory Announcement that contains inside
information according to REGULATION (EU) No 596/2014 (MAR). Not for
release, publication or distribution in whole or in part in, into
or from any jurisdiction where to do so would constitute a
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jurisdiction.
Jubilee Secures Further Supply of Chrome and PGM ROM Feed and
Re-Commences Ore Beneficiation Plant at Inyoni Operations
Jubilee Metals Group ("Jubilee" or the "Company"), the AIM and
Altx traded metals processing company, is pleased to announce that
it has executed a processing agreement whereby Jubilee has been
appointed as operator to re-commission and operate the existing run
of mine ("ROM") chrome beneficiation plant (the "Chrome Plant"')
adjacent to its Inyoni Operations ("Inyoni") (together the
"Processing Agreement"). The Processing Agreement is backed by a
guaranteed supply of a minimum of 40 000 tonnes per month of chrome
and PGM containing ROM which has the potential to be increased to
80 000 tonnes per month. The PGM bearing tails produced by the
Chrome Plant will be further processed at Jubilee's adjacent Inyoni
PGM recovery plant. The PGM rich tails, which will be produced
under the Processing Agreement and supplied to Inyoni, are in
addition to the existing PGM tailings resources already owned by
Jubilee and the PGM tails produced by its Windsor operations. The
Processing Agreement not only significantly extends the life of the
existing PGM resource but also offers the potential for Jubilee to
significantly expand its Inyoni Operations.
Highlights
-- Jubilee secures another significant ore supply and Processing
Agreement further increasing its long term access to chrome and PGM
rich feed material
-- Under the new Processing Agreement Jubilee has been appointed
to recommence the ROM chrome beneficiation plant at its Inyoni
operations which supplements the existing PGM tailings resources
with guaranteed supply of new mined material
-- Guaranteed minimum supply of 40 000 tonnes per month of new
ROM to the Inyoni Operations is in addition to the 60 000 tonnes
per month of ROM announced previously at Jubilee's Windsor
Operations and the 35 000 tonnes per month feed material secured at
its new Windsor 8 facility
-- The Processing Agreement significantly extends the existing
PGM resources with further guaranteed ore supply offering the
potential to expand the processing capacity of the Inyoni
Operations
-- Jubilee is currently reviewing the expansion of Inyoni to reach 3 500 PGM ounces per month
-- Jubilee's Inyoni Operations now have the potential to offer
near and long-term quality earnings
Leon Coetzer, CEO of Jubilee, commented: "Jubilee has, through
the Processing Agreement, further strengthened the sustainability
of its operating capacity and earnings base in South Africa. Our
specialist processing solution which recovers chrome and PGMs from
feed materials and discard, as well as our access to unique
processing solutions and intellectual property, make Jubilee an
internationally recognised metals recovery company.
"We continue to strive toward ensuring that our operations are
constantly supplied with quality feed sources allowing them to
operate at full capacity, whilst at the same time significantly
increasing our surface PGM resources from the discard of the chrome
operations. The Processing Agreement secures up to 80 000 tonnes of
ROM feed for our Inyoni Chrome plant for the next eight years in
addition to the already 95 000 tonnes per month of chrome
processing capacity secured at our Windsor Chrome plant and new
Windsor 8 facility as previously announced. Jubilee now has the
ability to produce in excess of 90 000 tonnes of saleable chrome
concentrate per month under protected operational margins and
adding to its existing PGM resources.
"We will continue to strive to outperform the industry norm on
chrome efficiencies, with a team that has proven beyond
expectations its capability to achieve consistent and exceptional
chrome recovery efficiencies.
"Our proven capability to maximise output through well developed
and tested processing solutions sets the pace for Jubilee to secure
further third party chrome material supplies. "
Key Terms of the Processing Agreement
Under the terms of the Processing Agreement, Jubilee has been
appointed to operate and manage the chrome ore beneficiation plant
situated adjacent to Jubilee's Inyoni Operations at a fixed toll
fee. The Processing Agreement further guarantees the supply of a
minimum of 40 000 tonnes per month of ROM feed with the potential
for this to be increased to 80 000 tonnes per month for an initial
period of three years, and extendable by a further five years.
Under the Agreement Jubilee also retains the rights to all discard
material from the chrome ore beneficiation plant including all
contained PGMs.
The Processing Agreement secures both a committed feed of ROM
material to the Inyoni Operations as well as the continued
production of upgraded PGM discard material for further processing
at Jubilee's PGM recovery plants.
As part of the Processing Agreement Jubilee will fund an
estimated GBP 1.34 million (ZAR 30 million) capital required to
upgrade the chrome ore beneficiation plant whereby capital plus
interest will be recovered by Jubilee under a fixed charge per ROM
ton processed over the first three years of the Processing
Agreement. Jubilee will fund the capital required from its own cash
reserves.
The additional ROM feed processed by the chrome ore
beneficiation plant to firstly recover the chrome will produce new
PGM enriched tailings which is fed directly to the Inyoni PGM
recovery plant. To accommodate this additional PGM feed Inyoni will
reduce the rate at which it is reclaiming PGM feed material solely
from its existing PGM surface tailings resources, thereby extending
the life of its existing PGM resources. The additional tailings
offers Jubilee the opportunity for a modest capital investment, to
expand the Inyoni Operations increasing its monthly PGM ounce
production to 3 500 PGM ounces per month. The designs for the
expansion are currently being considered by Jubilee and if approved
will be funded by the Company.
24 August 2020
**ENDS**
For further information visit www.jubileemetalsgroup.com or contact:
Jubilee Metals Group PLC
Colin Bird/Leon Coetzer
Tel +44 (0) 20 7584 2155 / Tel +27 (0) 11 465 1913
Nominated Adviser - SPARK Advisory Partners Limited
Andrew Emmott/James Keeshan
Tel: +44 (0) 20 3368 3555
Broker - Shard Capital Partners LLP
Damon Heath/Erik Woolgar
Tel +44 (0) 20 7186 9900
Joint Broker - WHIreland
Harry Ansell/Katy Mitchell
Tel: +44 (0) 20 7220 1670/+44 (0) 113 394 6618
JSE Sponsor - Sasfin Capital (a member of the Sasfin group)
Sharon Owens
Tel +27 (0) 11 809 7500
PR & IR Adviser - St Brides Partners Limited
Catherine Leftley/Beth Melluish
Tel +44 (0) 20 7236 1177
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