Sylvania Resources and Jubilee Platinum have formalised their joint venture to undertake smelting and refining activities in the Bushveld Complex in South Africa.

The two companies are set to focus on processing and treating low-grade and high-chrome concentrate pgm tailings, using Jubilee's ConRoast technology.

Ownership of the new smelting firm will be split 70:30 in favour of Jubilee, while a second 50:50 venture will be created for the processing of future tailing opportunities.

"These new companies combine the joint operating capability of Jubilee and Sylvania to take pgm-containing dump material into metal," said Jubilee CEO Colin Bird.

"The ongoing arrangement provides the platinum industry with a formidable total capability solution for the processing of pgm tailings and high-chrome concentrates."

Terry McConnachie, Managing Director of Sylvania, added that the deal provides a "significant step" in unlocking the value of assets acquired through the recent takeovers of Great Australian Resources and SA Metals.

The binding Framework Agreement announcement comes after the two firms revealed the signing of their strategic partnership in November 2009.

Sources:

Jubilee and Sylvania join forces on PGM processing (04/02/10)

Jubilee, Sylvania sign smelting tie-up (04/02/10)

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