Jubilee Platinum is set to purchase a smelting facility in Middelburg as the first site for its ConRoast furnace build programme, it has been confirmed.

The company has thrashed out a $14 million deal with Thos Begbie Holdings (TBH) for the brownfield site, which is located in Mpumalana province in South Africa.

Jubilee will pay $10 million for a 70 per cent stake in TBH and offer a $4 million share or cash call option to buy up the remaining 30 per cent from a number of trusts.

The ConRoast smelting process has been the subject of considerable interest in the pgm industry and has been licensed exclusively to Jubilee's subsidiary, Braemore Resources, until 2020.

Colin Bird, Chief Executive of Jubilee, explained that securing the first site represents a "key step" in the company's plans to fully commercialise the technology.

"This acquisition will lead to short-term cash flow and will significantly reposition Jubilee in the platinum arena," he said.

"We are convinced that the industry now acknowledges the necessary role ConRoast will have in smelting primary and secondary high-chrome platinum concentrates."

Jubilee also revealed that the site offers a 10MW gas-powered generator facility and a 6MW municipal power supply, which should support the first 5MW ConRoast direct current arc furnace.

ConRoast was originally developed by Mintek and involves the treatment of nickel-copper and pgm sulphide concentrates.

Source:

Jubilee buys site for ConRoast facility in Middelburg (04/05/10)

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