JOHANNESBURG (miningweekly.com) – Following the reinstatement of the small-scale mining licence for the Kabwe lead/zinc/vanadium project, in Zambia, AltX- and Aim-listed Jubilee Metals has executed its shareholders' agreement and its operating agreement with Aim-listed BMR Group to start the joint execution of the project.
Jubilee, which has been appointed as operator and is tasked with completing the Kabwe project’s business plan and implementation, will now work to present the project business plan to the newly formed joint venture (JV) company for approval by the board by June 15.
“I will [also] be presenting the project execution plan to the Zambian authorities for approval in the coming days, as part of our ongoing engagement with the Zambian mining department. We will continue with site preparation work and confirming equipment specifications during this time,” said Jubilee CEO Leon Coetzer in a statement on Wednesday.
The group is also set to provide further loan funding of £2-million for an effective 40% ownership of the JV holding the Kabwe project, in addition to holding 29.01% of BMR.
Jubilee entered into an agreement with BMR in October 2017 to jointly recover zinc, lead and vanadium at the Kabwe project. Jubilee has since increased its stake in Kabwe to 57.41%.
In February, BMR had been issued with a rights termination notice for Kabwe, which Jubilee and BMR subsequently appealed.
The shareholders’ agreement directs the establishment of the JV company, Kabwe Operations, which will be assigned all intellectual property developed for the execution of the project, as well as the right to fund and execute the project on behalf of BMR.
Kabwe Operations has been appointed the project manager, with Jubilee appointed as the operator responsible for developing the project’s business plan, joint funding, construction, commissioning and operation.