The processing deal will see Northam fund the refurbishment of the platinum recovery circuit before Jubilee commences the shipment of platinum-rich material to Northam in June.
Jubilee aims to achieve a minimum processing rate of 60,000t per month via the latest agreement, which will enable the company to produce an estimated 2,800 ounces (oz) of PGM per month from February next year.
Jubilee Metals Group chief executive Leon Coetzer said: “The structure of the agreement captures the intent of both companies to develop a lucrative partnership in the processing of PGM and chrome-rich material.
“It also opens the door to grow our partnership to engage in similar further opportunities with one of the world’s largest platinum producers.
“I am looking forward to working closely with the Northam team as we share our processing capabilities and expertise to maximise value extraction from the PlatCro PGM-rich material.”
Jubilee and Northam are expected to share the project earnings from the sale of PGM concentrate, which includes platinum, palladium, rhodium, iridium, osmium and gold.
However, Jubilee will retain the majority of earnings as part of the arrangement.
The revenue from project is estimated to be approximately $2.4m per month as per current prices.