Aim- and AltX-listed metals processing company Jubilee Metals Group has made significant further progress at its copper and cobalt tailings projects, in Zambia, with the successful execution of three strategic transactions.
The transactions, worth a combined $24.77-million, include the Kitwe tailings project – which includes Project Elephant and the Ndola tailings project – Project Roan and the Mufulira project.
With the completion of the transactions, Jubilee will hold a 100% interest across its integrated southern refining strategy, which includes the Sable copper and cobalt refinery with a 14 000 t/y copper capacity, together with Project Roan which has a 10 000 t/y copper concentrator.
In addition, Jubilee increases its beneficial interest across its northern refining strategy, with Project Elephant’s TD52 portion, to 80.75%, bringing to a total the highest copper and cobalt concentration of all tailings within Project Elephant.
The northern refining strategy is specifically targeted by the accelerated development of Jubilee’s cobalt extraction process and Jubilee’s beneficial interest at the Mufulira project increasing to 97%.
Combined, the three transactions offer Jubilee the flexibility to better schedule the development of the various tailings projects.
As such, Jubilee will increase its investment into the southern refining strategy by expanding Sable Refinery to increase the copper sulphide recovery circuit, as well as expanding the cobalt recovery circuit.
Accordingly, Jubilee is seeking to raise gross proceeds of $41.8-million by way of a conditional placing of new ordinary shares at a price of 16.03p apiece, which will be applied to satisfy the consideration in respect of the transactions and towards the expansion of Sable Refinery, while accelerating the capitalisation and progress of the Ndola-based Project Lechwe (targeted copper concentrator and tailings) and Project Elephant.
Jubilee CEO Leon Coetzer says the transactions, individually, are strongly value accretive and add “tremendous” value to Jubilee’s expanding copper and cobalt portfolio in Zambia.
“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.”
Coetzer adds that Jubilee is now able to increase the copper sulphide section of its refinery to fully absorb this portion of Project Roan’s production that previously was allocated to be sold as a high-grade concentrate under the terms of the joint venture, while only the copper oxide was targeted to be fully refined to copper cathode.