3rd Apr 2025 11:17
(Alliance News) - Jubilee Metals Group PLC on Thursday said it has started to "monetise" a large waste project that it has agreed to buy in Zambia, which offers "tremendous potential" for the company to expand its copper portfolio.
The London-based metal processing company said it has entered into an agreement to sell 10 million tonnes of an estimated 260 million tonnes of copper material at the project to a multinational metals company, which it didn't name.
The value of the 10 million tonnes material trade is estimated at USD6.75 million.
This agreement covers less than 5% of the project's total material, but Jubilee said it will allow it to gain insight into the performance of the copper material when processed at the partnered company's existing facilities.
Jubilee has held "extensive" engagements with numerous interested parties on the best way to monetise the large waste project, Jubilee Chief Executive Officer Leon Coetzer said.
"We have been considering carefully the optimal partner for the implementation of the project especially following the encouraging results of the due diligence review," Coetzer said.
Jubilee noted on Thursday that it secured the exclusive rights to the large waste project for a reduced consideration of USD18 million, down from USD30 million originally.
The company said on Thursday it has until mid-May to acquire the assets and settle about USD11.5 million remaining of the consideration over a period of 12 months, it added.
Jubilee said in December last year the total acquisition value of a 100% interest in the project had been reduced to USD18 million payable over 12 months to December 2025, down from USD30 million.
Shares in Jubilee were flat at 3.10 pence each in London on Thursday morning. In Johannesburg, its shares were up 7.7% to 84 rand cents.
By Artwell Dlamini, Alliance News reporter
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