Diversified metal recovery and production company Jubilee successfully closed a placing of 236-million new ordinary shares on December 15, taking the total gross proceeds of the placing from the minimum amount of about £10-million, to £13-million, at a price of 5.5 pence apiece.

Jubilee intends to use the proceeds to accelerate the implementation of its Zambian copper operations, and progress the newly acquired Copper Waste Rock Project in partnership with United Arab Emirates-based transition metals company International Resources Holdings.

As such, Jubilee will deploy the capital towards the initial payment of $1.75-million, due under the agreement for the acquisition of the copper waste rock dump and progress resource and process design, amounting to about $4.5-million.

Jubilee will also use the proceeds to expand the sulphide recovery circuits at its Zambia-based Sable Refinery to accommodate increased sulphide concentrate production from newly acquired projects, which will account for about $5.7-million.

In addition to using a portion of the proceeds for general working capital purposes, Jubilee will also progress the project development phase of the Mufulira slag project, with early-stage bulk trial and processing – an endeavour which will account for about $2.5-million.

Jubilee CEO Leon Coetzer says overwhelming support for this very targeted fundraise was received.

“Fundamental to this support was the recognition of the potential value and scale of copper production that this new copper Waste Rock Project affords Jubilee. The additional value in accelerating the implementation of this project over and above our current commitment to the expansion of both chrome and copper further adds to this potential value for Jubilee.”

He adds that the fundraise offers Jubilee the opportunity to not only bring forward the expected timelines to implement the Copper Waste Rock Project, but to potentially scale-up the projected copper production profile of the project to far exceed Jubilee’s copper strategy of 25 000 t/y of copper.

“Importantly, under the terms of the executed agreement with the IRH, our partnership affords us the ability to bring this project to full fruition with no further capital requirements from Jubilee while enjoying a fully funded position,” says Coetzer.