12th Dec 2023 13:08
(Alliance News) - Jubilee Metals Group PLC's copper waste rock assets deal in Zambia got the ringing endorsement from German bank Berenberg.
Jubilee secured one of the largest copper waste rock assets in Zambia and formed a strategic partnership that will invest in this "significant" dump.
The London-based metal processing company with projects in South Africa and Zambia estimates the waste rock material on surface at more than 350 million tonnes.
Overall project costs, including mining equipment and project infrastructure, are likely to be around USD50 million, Julilee said.
The metal processing firm said it has signed a binding funding term sheet with Abu Dhabi-based International Resources Holding RSC to form a dedicated special purpose vehicle through which both the acquisition of the copper waste rock asset and implementation of the processing solution will be funded.
International Resources is affiliated to the Abu Dhabi conglomerate, International Holding Company PJSC.
Jubilee said it will be appointed by the special purpose vehicle to design, implement and operate the mining and processing solution.
"We think that this is an interesting development and shows how the modular strategy from Jubilee offers low-cost, scalable production, with meaningful upside," Berenberg said.
Early results from preliminary surface sampling indicate zones with grades higher than 1.5% copper, Jubilee said, noting that its team has started "extensive" resource definition and process technical review with the aim of completing the project implementation detail and timeline within the next 60 days.
Jubilee said it has the capability to construct and commission all modular copper units within 12 months and aims to commence in the first quarter next year.
It said its newly developed modular copper units aims to produce in excess of 20,000 tonnes per annum of copper at a cost of below USD4,000 per tonne of copper from this historical waste rock dump.
Berenberg analysts added: "We view the release as a positive and think that this offers another dimension to the Jubilee story, while also showing a clear pathway to more copper growth in Zambia."
Berenberg rates the stock at 'buy' and has a 17 pence price target. Jubilee shares shot up 24% to 6.53p each in London on Tuesday afternoon.
By Eric Cunha, Alliance News news editor
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