Aim- and AltX-listed metals processing company Jubilee Metals has received notice from ACAM to convert its remaining convertible loan notes, totalling $7.8-million (£5.89-million) of principal debt and accrued interest, into new ordinary shares in the company.

The ACAM convertible loan note formed a key part in the funding of the acquisition and successful recapitalisation of Jubilee’s Sable Refinery, which launched Jubilee’s Zambian copper strategy, the company highlights.

This not only makes ACAM a strategic shareholder with a keen interest to further support Jubilee’s copper ambitions, but also eliminates Jubilee’s external debt position in relation to its Zambia operations and releases all securities held over Jubilee’s Zambian assets.

The settlement of all debt and the release of the security paves the way for Jubilee to leverage its balance sheet for structured debt funding of its Zambian Copper Strategy, the company says.

Both the company’s Zambian and South African operations carry no further long-term secured debt.

“The conversion of all of Jubilee’s debt to ACAM is a historic moment for the company and a ringing endorsement of the success of our strategy to date and our focus going forward.

“Having ACAM’s support as an institutional investor over recent years, and indeed going forward remaining a substantial investor, has been critical in the acquisition of our Zambian assets, including the Sable Refinery, establishing the crucial foundation for entry into Zambia and the development and implementation of our copper and cobalt strategy,” Jubilee CEO Leon Coetzer says.

He adds that with Project Roan’s integrated copper concentrator fast nearing completion and imminent production ramp-up, and Project Lechwe, the company’s second planned copper processing facility, undertaking final design pilot runs, Jubilee’s fully funded and capitalised Southern Zambian strategy becomes debt-free.

“The recent success of our Zambian strategy demonstrates how, in a relatively short period of time compared with mining projects, Jubilee can establish itself as a dominant player in the country, broadening its commodity exposure, achieving early revenues and setting itself up for significant operational and financial growth long into the future.

“As we recently announced, we have plans to roll out a global metals processing strategy during 2022, leveraging our unique South African and Zambian intellectual property across other jurisdictions and continents,” Coetzee adds.