AIM and JSE-listed Jubilee Platinum is to acquire Chemstof for R65.5 million (£6 million), the company confirmed today (April 12th).

The acquisition allows Jubilee to secure near-term platinum concentrate for its Middelburg ConRoast smelting facilities.

Jubilee will buy 51 per cent of Chemstof, which owns the operating chrome beneficiation plant.

It will also acquire 59 per cent of the ordinary shares of Platcro Minerals, which has the mining and prospecting rights to the near surface reefs.

Jubilee will hold 65 per cent of a newly-formed company that will own the platinum group elements (pge) processing plant and associated surface stockpile.

It is thought Chemstof could possess up to 40,000oz of pge contained in a 500,000t surface stockpile of pge-rich chrome tailings.

"While Jubilee continues to advance the Tjate project to bankable feasibility stage, the company recognises the need to access its own supply of near to medium-term platinum ore, the concentrate from which we are able to process at our ConRoast facility," Jubilee chief executive officer Leon Coetzer told Business Live.

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Jubilee to acquire Chemstof for R65.5m (12/04/11)
 

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