The company is a South African Platinum production specialist, building supply chain capacity from ‘Mine-to-Metal’.Today’s news highlights the execution of a Co-Operation Agreement with Hernic Ferrochrome Proprietary Limited (“Hernic” for the processing of the platinum containing surface chrome tailings currently stockpiled and generated by Hernic, to produce Chromite and Platinum Group Metals (“PGM” concentrate.Hernic is the world’s 4th largest integrated ferrochrome producer based in the North West Province, South Africa. Hernic has an estimated 3 million tons of platinum containing material at surface and continue to add to this. This agreement is in addition to the first project which is due to be commissioned in the first quarter of 2016. The Company has targeted a combined processing of platinum containing surface material over the two projects in excess of 900 000 tons per annum.The agreement announced today appoints Jubilee as the exclusive party to beneficiate the chromite and PGMs contained in the Hernic Surface Material. This material has been fully drilled and assayed for chrome and PGM content. This has resulted in an independent resource statement of 1.7 million tons, of which approximately 90% of the resource is classified in the measured category under the internationally recognised SAMREC code. Hernic also has access to secondary surface stocks, which it has internally identified and could increase the surface stocks to in excess of 3million tons through further drilling programs. The total Project is estimated to contain PGM ounces in excess of 224 000 (3PGM + Au) oz.The Project will be the largest PGM beneficiation plant of surface chrome tailings in South Africa capable of producing annual revenues of GBP18.2 million (ZAR400 million) at an average metal basket price of USD906 per (3PGM + Au) oz.Jubilee commented that as previously announced the company has received funding terms from a major financial institution which has received credit approval for the debt element of the project financing required to bring its Platinum Projects into operation. The size of the ZAR based debt funding for both surface projects equates to GBP11.5 million (ZAR255 million) before financing costs. The working capital required to bring the platinum surface projects into operation and to achieve positive earnings is estimated at GBP3.4 million (ZAR75 million). Jubilee Platinum has shown competence in delivering capital appreciation through operations as a ferro-alloys smelter and power generator. It is now switching focus to the core area of company expertise, minerals production.
