BMR has entered into a new arrangement for the proposed funding, construction and operation of the Kabwe zinc-lead tailings re-processing plant with Jubilee Platinum.
BMR said the arrangement was subject to technical review by Jubilee and final agreement of work programme and legal documentation by no later than 28 Feb.
It said that under the proposed arrangement, Jubilee would provide up to £2.3m for construction of the Kabwe plant and BMR would retain 100% ownership of the Kabwe large scale mining licence, tailings and infrastructure and a minimum of 60% of the economic interest in the long term post-tax profits of Kabwe operations.
BMR said that it and Jubilee were targeting completion of the construction and commissioning of the Kabwe plant by the end of June 2018 and commencement of operations and revenue generation thereafter.
BMR said it had undertaken to terminate the financing arrangements with African Compass International Limited by 28 Feb.
Chairman Alex Borrelli said: 'I am delighted to reach this agreement with Jubilee after an extended period of negotiation with a number of groups.
'BMR has chosen to advance the Kabwe operation with Jubilee given its strong credentials and high degree of technical, operational and managerial experience.
'We believe that we have secured a strong partner to co-develop Kabwe and despite the recent disappointments the company is now in a good position especially at a time when both lead and zinc commodity prices are performing strongly.
'Our principal objective is to ensure that, subject to Jubilee's review, we can complete the construction, and start commissioning, of the Kabwe Plant by 30 June 2018 with revenue generation commencing thereafter.
'BMR is confident that Kabwe is a robust and feasible operation and we look forward to co-developing this project with Jubilee.
'Also, in addition to the work at Kabwe, we expect that BMR and Jubilee will work towards integrating the treatment of high grade zinc ore from the Star Zinc mine, in which BMR has a 49% interest, at an early stage at the Kabwe Plant which should lead to enhanced returns.'
At 9:12am: (LON:BMR) Berkeley Mineral Resources PLC share price was +0.63p at 4.25p