The acquisition is conditional on admission to trading on AIM a total of 97 371 29 new ordinary shares of BMR which equates to 29.01% in the enlarged share capital of BMR, for a total consideration of GBP 500 000 cash and the issue of 63 166 969 new ordinary shares of Jubilee.
The acquisition will increase Jubilee’s effective interest in the Zambian lead/zinc Kabwe tailings project to 57.41% subject to Jubilee’s election to execute the Kabwe project.
The Kabwe dumps’ estimated JORC compliant lead and zinc volumes is 164 000 t of zinc and 272 000 t of lead excluding the further significant non-JORC compliant surface resources and the contained vanadium.
On-going due diligence has confirmed understanding of size and quality of the Kabwe lead, zinc and vanadium surface assets and test work has confirmed the process characteristics for metals recovery.
Jubilee will work with the BMR board to fast track other similar opportunities identified in the country.
“This strategic acquisition is consistent with our stated mission to take our brand into low risk surface projects in other commodities and other countries,” says Leon Coetzer, CEO of Jubilee.
“I expect to conclude our decision on whether to proceed with the Kabwe project and on what project design parameters, by the 28th of February 2018.”
“The acquisition also provides Jubilee the benefit of the in-country presence that BMR has established. This gives us the opportunity to fast track our entrance into Zambia for other targeted projects.”
“Our due diligence now focusses on working with the BMR team to establish the optimal recovery route for extracting the metals both from a commercial perspective as well as in an environmentally responsible manner.”
As part of the acquisition, BMR will offer Jubilee an executive seat on the BMR board as well as an executive seat on the EPL board. EPL is BMR Group’s Zambian subsidiary.
Feature image credit: BMR Group