Jubilee has announced significant progress at its Copper and Cobalt tailings projects in Zambia with the successful execution of three strategic transactions which significantly increases Jubilee’s beneficial interest across the Company’s copper and cobalt tailings projects in Zambia.
The Transactions include Project Elephant (Kitwe Tailings Project), Project Roan and the Mufulira Project. Completion of the Transactions is subject to fulfilment of certain conditions precedent that are normal for transactions of this nature including regulatory approvals and consent.
At completion of the Transactions, Jubilee will hold a 100% interest across its integrated Southern Refining strategy which includes the Sable copper and cobalt refinery (14 000 tonnes per annum copper capacity) together with Project Roan (10 000 tonnes per annum copper concentrator).
In addition, Jubilee increases its beneficial interest across its Northern Refining Strategy, with Project Elephant’s TD52 portion to 80.75% (highest copper and cobalt concentration of all tailings within Project elephant) which is specifically targeted by the accelerated development of Jubilee’s cobalt extraction process, Jubilee’s beneficial interest at the Mufulira Project increasing to 97%.
Combined, the Transactions have an aggregate value of c. US$ 24.77 million (c. £ 17.83 million) and offers Jubilee the flexibility to better schedule the development of the various tailings projects. As such Jubilee will increase its investment into the Southern Refining Strategy by expanding Sable Refinery to increase the copper sulphide recovery circuit as well as expanding the cobalt recovery circuit.
Accordingly, the Company is seeking to raise gross proceeds of c. £ 30 million (c. US$ 41.8 million) by way of a conditional placing of new ordinary shares at a price of 16.03 pence per share, which will be applied to satisfy the consideration in respect of the Transactions and towards the expansion of Sable Refinery while accelerating the capitalisation and progress of Project Lechwe and Project Elephant.
Leon Coetzer, CEO of Jubilee, commented:
“I am delighted to have secured these Transactions which each individually are strongly value accretive and add tremendous value to Jubilee’s expanding copper and cobalt portfolio in Zambia.
“Our Southern Refining Strategy is now fully owned by Jubilee capturing 100% of the earnings potential and allowing us the complete flexibility to better integrate Project Roan with the refining capability at Sable Refinery. We are now able to increase the copper sulphide section of our refinery to fully absorb this portion of Project Roan’s production that previously was allocated to be sold as a high grade concentrate under the terms of the joint venture while only the copper oxide was targeted to be fully refined to copper cathode. In short succession of our recent addition of a refining presence in the North, we will also expand our cobalt refining capability as part of the development of the cobalt solution for Project Elephant offering significant potential for our Northern Refining project.
“In addition, the Transactions enable Jubilee to secure a stronger ownership position and flexibility to better sequence the integrated Northern Refining projects in order to unlock value in an efficient and value accretive manner.
“The transaction at Project Elephant targets the richest tailings dam, TD52 at Elephant, where Jubilee’s process development centre has confirmed very promising results from the cobalt recovery with potential to significantly increase the overall project economics. The third transaction increases Jubilee’s beneficial interest to 97% at the Mufulira Project.
“The funds raised in the conditional Placing will also support Jubilee’s continued capital investment, including the completion of Project Roan, while at the same time accelerating the capitalisation of Project Lechwe and Project Elephant.”