Wrap Text
Acquisition of all chrome rights at Hernic, further transforming operations
Jubilee Metals Group PLC
(“Jubilee” or “the Company”)
Registration number (4459850)
Altx share code: JBL
AIM share code: JLP
ISIN: GB0031852162
Acquisition of all chrome rights at Hernic, potential for significant earnings addition
Dissemination of a Regulatory Announcement that contains inside information according to
REGULATION (EU) No 596/2014 (MAR)
Jubilee Metals Group Plc ("Jubilee" or “the Company”), the AIM and Altx traded metals processing
company announces that K2018239983 (SOUTH AFRICA) (PTY) LTD (“NewCo”), a subsidiary of South
Africa’s largest and one of the world’s largest ferrochrome producers, has exercised its rights in
terms of an exclusive agreement (“Exclusive Agreement”), previously entered into between Jubilee
and NewCo, to sell all further chrome rights to the chrome contained in all of the historical tailings
at Inyoni to Jubilee.
Highlights
• Jubilee extends it rights at its Inyoni Operations to now also include all chrome contained in
the historical tailings at its Inyoni Operations
• Historical tailings available to Jubilee now increases by 1 700 000 tonnes of historical tailings
at the Inyoni Operations, 630 000 tonnes of previously processed tailings and a further c.
1 000 000 tonnes of PGM rich material acquired by Jubilee
• This acquisition has the potential to significantly enhance earnings from Inyoni Operations
which previously free issued the currently produced saleable chrome concentrate to Hernic
• Jubilee accelerates the implementation of its very successful fine chrome technology at its
Inyoni Operations to further increase chrome concentrate production
• The acquisition provides Jubilee with the optionality to respond to market conditions
throughout the metal mix optimising project earnings
Leon Coetzer, Chief Executive Officer, says: “The addition of the chrome rights significantly expands,
and further transforms the economic value of our Inyoni Operations. We are already recovering the
chrome concentrate at Inyoni, which was previously returned to Hernic, and now will be sold to the
market solely for Jubilee’s benefit. This addition has the potential to add a further 8 000 to 10 000
tonnes per month of chrome concentrate to our existing chrome operations with no additional risk to
Jubilee and the majority of operating costs already being absorbed by the PGM operation.
“As owners of the chrome in the vast amount of surface tailings at Inyoni, we will accelerate the
implementation of our leading fine chrome plant to further increase the chrome concentrate
production. I look forward to building and expanding our relationship with our renowned
ferrochrome partner at Inyoni.
“We continue to make exceptional progress across the portfolio and this Exclusive Agreement is a
further milestone in our on-going strategy to grow and diversify our earnings base.”
Further information
As announced on 24 October 2019, Jubilee entered into a framework and tailings purchase
agreement (“Tailings Agreement”) with NewCo, to acquire 100% of the rights to PGM earnings from
the current and future tailings produced at Jubilee’s Hernic Project (“Hernic”) located in the
Bushveld Complex, South Africa. In addition to the current unprocessed 1 700 000 tonnes of
historical tailings at the Inyoni Operations and the 630 000 tonnes of previously processed tailings,
Jubilee has acquired the rights to a further c. 1 000 000 tonnes of PGM rich material.
Jubilee owns and operates a chrome and PGM processing facility at Inyoni with a processing
capacity of 55 000 tonnes per month. The facility currently produces up to 9 000 tonnes of saleable
chrome concentrate and 2 250 ounces of PGMs per month.
Previously, Jubilee had a Co-Operation Agreement (“Hernic Agreement”) with Hernic Ferrochrome
(Pty) Ltd (“Hernic Ferrochrome”), whereby Jubilee had the rights to all PGM earnings from the
tailings at Hernic Ferrochrome until it secured a 30% return on investment, where after Hernic
Ferrochrome secured the majority of earnings. Under the Hernic Agreement, all of the chrome
concentrate produced is returned to Hernic Ferrochrome for its own use or sale to the market. The
operations and assets of Hernic Ferrochrome are being acquired by NewCo and following entering
into the Tailings Agreement with NewCo, the Hernic Agreement is terminated with immediate
effect.
Under the Tailings Agreement, Jubilee:
a) has acquired 100% of all rights to the PGM earnings from current tailings produced at
Inyoni;
b) will acquire 100% of all rights to the PGM earnings from future tailings produced at Inyoni;
c) has acquired all rights to a further c.1 000 000 tonnes of PGM rich material located close to
the Company’s Windsor Chrome Operations and previously held by Hernic Ferrochrome;
and
Under the Exclusive Agreement, Jubilee:
a) has acquired 100% of all further chrome rights to the chrome contained in all of the
historical tailings at Inyoni.
b) The total consideration for all the chrome contained in the historical tailings is
approximately US$16.39 million (at current conversion rates), which will be majority funded
from Jubilee’s existing cash and operating cash flows, together with project funding as
necessary. The total consideration will be settled in three tranches, each 30 business days
apart. As previously announced, operations at Hernic are now known as Inyoni Operations.
In addition, Jubilee has increased the scope of its Inyoni Operations to take control of the re-mining
of tailings to control the feed supply of its Inyoni Operations, targeting to increase feed rate to
50 000 tonnes per month.
For further information visit www.jubileemetalsgroup.com, follow Jubilee on Twitter (@Jubilee
Metals) 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/Vassil Kirtchev
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
United Kingdom
5 November 2019
Date: 05/11/2019 10:30:00
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