Jubilee Metals lifts stake in Zambia tailings projects and raises £30mln in share placing

Jubilee Metals Group PLC announced three acquisitions that will see the metals processing company increase its interests in its copper and cobalt tailings projects in Zambia.

The acquisitions are worth US$24.77mln (£17.83mln) in total and to satisfy the consideration, the AIM-listed company is raising £30mln through a placing of new shares at 16.03p each.

In a statement, Jubilee said the acquisitions comprise Project Elephant (Kitwe Tailings Project), Project Roan (Ndola Tailings Project) and the Mufulira Project.

Upon completion, the company will hold a 100% interest across its integrated Southern Refining strategy, which includes the Sable copper and cobalt refinery with 14,000 tonnes a year copper capacity and Project Roan with 10,000 tonnes per annum copper concentrator.

In addition, Jubilee is increasing its interest in its Northern Refining Strategy, where it will hold 80.75% in Project Elephant’s TD52 portion and 97% in the Mufulira Project.

Project Elephant’s TD52 portion has the highest copper and cobalt concentration of all tailings within Project Elephant and is specifically targeted by the accelerated development of Jubilee’s cobalt extraction process.

READ: Jubilee Metals set to boost copper and cobalt refining capacity in Zambia

Part of the placing proceeds will be invested in the expansion of the Sable Refinery to increase the copper sulphide recovery circuit as well as expanding the cobalt recovery circuit.  

Jubilee said the transactions will give it greater control over the development of its tailings projects in Zambia and over the sequence and rate of development of both its Northern and Southern refinery strategies.

“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,” said Jubilee CEO Leon Coetzer.

“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.

“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 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.”

Story by ProactiveInvestors