Jubilee Metals Group PLC (LON:JLP) has announced an agreement with Hernic Ferrochrome Pty Ltd, one of the world’s largest ferrochrome producers, to acquire 100% of the rights to earnings from the current and future tailings produced at the Hernic Project in South Africa.

Previously, the AIM-listed firm had rights to all platinum group metals (PGM) earnings from the tailings until it received a 30% return on investment, while Hernic received the rest.

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With the new agreement, the metals recovery company will gain full control of the operations, turning from contracting joint venture partner into owner of all economic rights.

Jubilee will have rights over 1.70mln tonnes of unprocessed tailings and 630,000 tonnes of processed product, as well as a further 1mln tonnes of PGM-rich material, for a total of US$5mln paid from its cash resources.

The two companies also entered into another agreement to buy rights to the chrome contained in all current tailings, adding an extra 8,000 to 10,000 tonnes of chrome concentrate to Jubilee’s existing production.

 “This agreement is yet another significant milestone in our on-going development strategy to grow and diversify our earnings base,” said Jubillee’s chief executive Leon Coetzer.

“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,” he added.