JOHANNESBURG (miningweekly.com) – Aim- and JSE-listed Braemore Resources said on Tuesday that it had entered into discussions with various parties to finance the development capital needed to build the next stage ConRoast facility, with refining capacity.

The company also announced that it had entered into an agreement with junior platinum firm Jubilee to provide smelting and refining facilities as part of its commericalisation strategy, processing platinum group elements (PGEs) from Jubilee’s tailings.

Braemore said in a statement that it had, along with its technology partner Mintek, achieved the stated research and development programme objective of the ConRoast facility, which had been to develop a proven technology for the smelting of high-chrome platinum group metals (PGMs) concentrates.

“We have steadily met our targets and we are poised for expansion. Funding the commercialisation of ConRoast and refining process is key, and we believe that the success of the development work done to date with the demonstration smelter, showcases our ability to address the financing, smelting, and refining challenges within the platinum industry,” said CEO Leon Coetzer.

The conclusion of the research into the PGM refining process would enhance the commercial strength of the smelting process, and was the final stage required to complete the research and development phase of the company.

“Braemore is now at the point in its business strategy, which will allow the company to transform from a technology development company into a commercially viable entity on the back of its technology.”

Meanwhile, Braemore said that its ConRoast technology would be applied to Jubilee’s PGE concentrate from tailings, which was said to add significantly more value to the miner’s PGE concentrate than conventional smelting and refining practice

The company reported that exploiting synergies between Jubilee’s PGE production and Braemore’s refining technology would provide the critical mass necessary to commercialise the venture.

The agreement provided a vehicle for Braemore and Jubilee to exploit the synergies between the two junior platinum companies.

COST REDUCTIONS

Braemore has also undertaken to restructure the demonstration smelting facility in response to current metal prices, and a strengthening rand.

“The company has experienced working cost increases in US dollar terms of some 12,5% within an eight-week period, while dollar metal prices have remained static. This has put significant pressure on the company’s working capital as it accelerated the conclusion of its research and development programme.”

Braemore said that the restructuring of the demonstrating facility was targeted towards significant reductions in operating costs, and reviewing the process units to better align with the proposed refining process.

“The process restructuring will be undertaken as swiftly as possible to minimise interruption to production at the demonstration unit.”

The refining process, once implemented, would increase the margins of the process to ensure strong commercial viability.

“This is a new dawn in Braemore’s evolution. We are no longer a technology or a development company, the acceleration of ConRoast’s commercialisation is now well under way,” concluded Coetzer.