Jubilee Platinum has agreed a binding memorandum of understanding for the acquisition of a company that treats near-surface chrome ore bodies containing platinum group elements (pge).

Mining Weekly reports Jubilee expects the acquisition of the firm, which also holds some mining and prospecting rights, to be completed by the end of June.

The company at the heart of the deal, which cannot be named as negotiations are still ongoing, has a surface stockpile of 500,000t of pge-rich chrome ore tailings, which could contain over 40,000oz of pge.

Chief executive officer Leon Coetzer told the news provider that the capacity to process its own platinum concentrates will be a major boost for Jubilee.

"The acquisition is in line with our strategy to target smaller privately held entities to build up the company's portfolio of near-term assets over the next two years, which will be used to feed our Middelburg processing facility," he was reported as saying.

Speaking to Business Day about the deal last week, Mr Coetzer explained that Jubilee wants 40 per cent of the capacity of the Middelburg plant to be supplied with its own concentrate within 24 months of commissioning.

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Jubilee to buy near-term platinum-containing assets (05/04/11)

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