Jubilee Metals Group PLC
Registration number (4459850)
AIM
share code: JLP
Altx share code: JBL
ISIN: GB0031852162
("Jubilee" or "the Company" or "the Group")
Dissemination of a Regulatory
Announcement that contains inside information according to UK
Market Abuse Regulations. Not for release, publication or
distribution in whole or in part in, into or from any jurisdiction
where to do so would constitute a violation of the relevant laws or
regulations of such jurisdiction.
Roll-out of Integrated Copper
Strategy in Zambia
Acquisition of two
near-surface copper mining operations
Jubilee, a diversified metals
producer with operations in South Africa and
Zambia, announces significant progress in the roll-out of its
Integrated Copper Strategy in Zambia.
The upgrade and expansion of Roan
(Roan Upgrade) has completed civil and mechanical construction,
with commissioning activity commenced. Jubilee also announces the
acquisition of two further copper resources currently in
operation.
Highlights
Roan Operation
§ Jubilee
concludes a further off-take agreement for stockpiled low grade
mined material (LG Material) in support of the expanded Roan
operations (Roan Operations).
o The
LG Material is upgraded at source prior to further processing at
Roan.
o The
upgrading of this LG material has commenced in preparation for the
ramp-up at Roan.
§ The Roan
Upgrade has completed construction with operational readiness
testing commencing. The electrical control system (ECS), originally
delayed, is undergoing testing before final implementation expected
during July 2024.
§ The
Jubilee team has commenced with pre-processing of targeted feed
material destined for Roan in preparation of an accelerated
commissioning and ramp-up during July 2024.
Copper Resource Transactions
§ Jubilee
concludes two copper resource transactions of operating open-pit
mines accessing near-surface copper material (open-pit operations)
which significantly increases its copper resource base
(Acquisitions).
§ The
Acquisitions are in support of the expansion of Jubilee's Sable
refinery (Sable) to target
16
000tpa of copper.
§ The
acquisition include:
o Project M - which has commenced with the delivery of material
to Sable 3 months ahead of schedule targeting to reach 25 000tpm at
a grade of 3-4% Cu within Q3 CY2024 with a project life expectancy
exceeding 8 years (Acquisition One); and
o Project G - an operating open-pit copper mine targeting to
ramp-up to 20 000tpm at a grade of 3-4% Cu Q4 CY2024 with a life
expectancy in excess of 8 years (Acquisition Two).
§ Acquisition One will be settled through a combination of
US$0.25 million in cash and US$1.5 million settled through the
issue of 15 096 798 new Jubilee ordinary shares (Acquisition
Shares). The Acquisition Shares will be issued at a price of 7.81
pence per share (Issue Price) being the 30-day volume weighted
average share price of Jubilee on the LSE on 19 June 2024. The
current owners have elected settlement in Jubilee shares, which
aligns their interests with Jubilee's long-term copper strategy in
Zambia.
§ Acquisition Two in the amount of US$2.1 million will be
settled through the issue of approximately 21 135 517 new
Jubilee ordinary shares (assumed at the Issue Price). The final
number of shares will be confirmed upon conclusion of Acquisition
Two.
Leon Coetzer, CEO
commented:
"It has taken a concerted effort by
the team to reach this critical point in the commissioning of the
Roan Upgrade. I look forward to the team completing an accelerated
commissioning and ramp-up of operations during the coming
month.
The Roan Upgrade together with our
Sable refinery offers Jubilee tremendous processing flexibility and
affords us the unique opportunity to aggressively pursue copper
resources that are unlocked by this capability.
The strategic acquisition of the two
open-pit operations is an example of our ability to leverage our
process capability to secure significant near-surface copper
resources already in operation. Zambia holds numerous similar
resource opportunities which we are actively pursuing.
Our offering to our resource
partners incorporates a sustainable approach to mining and recovery
of metals, which ensures lasting value to our stakeholders and
distinguishes Jubilee from many potential competitors. The
opportunity set is particularly large and capable of driving
Jubilee's future copper production well beyond the initial 25
000tpa target.
I am also pleased to report that our
copper production is on track to meet our revised copper guidance
of 3 250 to 4 000 tonnes."
Integrated Copper Strategy in
Zambia
The Integrated Copper Strategy is
enabled by Jubilee's proven ability to extract value from materials
often regarded by the industry as either waste or too complex to
extract economically through the traditional methods.
The targeted copper resources are
classed into three groups namely:
§ Tailings
and partially processed discarded low-grade materials (Previously
Processed Material);
§ Stockpiled
LG Material; and
§ Near
surface copper reef that is accessible through open-pit
mining.
All three categories are held in
vast quantities within Zambia, offering Jubilee the opportunity to
further upscale its operations through targeted acquisitions of
these resources. Jubilee has actively pursued the three copper
resource groups to grow its copper portfolio as an enabler to drive
the expansion of its processing and operational footprint in
Zambia. The success in securing these targeted resources has
afforded Jubilee the opportunity to transition Sable into a
dedicated refiner for the processing of material from open-pit
operations, while the upgraded Roan will be processing
predominantly LG Material and Previously Processed
Materials.
At completion an upgraded and
expanded Sable and Roan will operate as independent operations.
With Sable at full capacity from open-pit operations, Roan will
have the flexibility to either trade its copper-bearing concentrate
on the open market or, subject to capital allocation, further
expand to incorporate downstream refining of its concentrate. The
targeted combined processing capacity of approximately 25 000tpa of
copper is achieved by an expanded Sable at 16 000tpa and Roan at 8
000 to 9 000tpa (depending on feed grades) of copper.
The previously announced Waste Rock
Project transaction falls within the LG Material grouping which
Jubilee is executing in partnership with IRH based in Abu Dhabi.
The project is currently undergoing further resource drilling and
process testing as part of an independent technical and processing
study being conducted by the joint project team.
Roan
Upgrade
The construction activities for the
upgrade of the Roan Operations have been completed with the ECS
currently undergoing final testing before completing its
installation during July 2024. The Jubilee team has commenced with
the operational readiness testing of equipment at Roan to fast
track the ramp-up period post commissioning.
As part of the commissioning and
preparation of the Roan project, the Jubilee team has commenced
with the processing and upgrade of the targeted LG Material which
will be further processed at Roan's new front end section to
produce copper concentrates. Roan will predominantly process LG
Material that is upgraded at source and further processed at Roan,
while Roan's unique flexibility allows the simultaneous processing
of Previously Processed Material.
The capital allocation review and
decision to incorporate downstream refining at Roan to supplement
Sable's refinery capacity, is expected during October
2024.
Refer to the latest Roan Project
media on our website www.jubileemetalsgroup.com
recorded three weeks ago. Regular videos and
content will continue to be provided on the website.
Copper Resource
Transactions
Jubilee has executed three
transactions to secure further copper resources which underpins the
continued expansion of the Jubilee copper processing footprint in
Zambia. As previously announced on 18 April 2024, Jubilee has
secured an option, which it has now exercised, to secure a majority
ownership in two open-pit copper mines.
The first transaction comprises an
offtake agreement securing LG Material for the processing and
recovery of copper at the newly upgraded Roan Operations. Under
this agreement, Jubilee has secured the exclusive right as the sole
off-taker of the LG Material. The material will be pre-processed at
its current location to upgrade the copper content before being
transported to Roan for further processing. This additional offtake
agreement for Roan ensures that the capacity of the expanded Roan
Operations is fully secured in advance for the next 3 to 5 years.
The upgrade of this LG Material has already commenced in
anticipation of the commissioning and ramp-up of the expanded Roan
Operations.
The further two transactions involve
the acquisition of a majority ownership in two operational open-pit
copper mines. Both opportunities have undergone a rigorous review,
which included the processing of the material at Sable to confirm
the expected recovery of copper. Jubilee has
agreed to issue shares in Jubilee in consideration
for the acquisition to align the interests of the current
owners to Jubilee's long-term copper strategy in
Zambia.
Jubilee has already commenced with
operations at both opportunities with delivery of extracted
material expected to ramp-up to a targeted 45 000 tonnes of
material with an expected grade of 3-4% Cu during Q3 CY2024.
Project M has exceeded expectations with first copper material
delivery to Sable already commencing in June 2024, 3 months ahead
of the original schedule.
Jubilee aims to install a satellite
upgrade facility near both operations over the coming twelve months
as part of its strategy to operate regional material upgrade
facilities prior to refining.
Project M
On 1 November 2023, the Company
announced a copper ore off-take agreement with a nearby mining
company. Project M has previously been processed at Sable, with
copper ore grading at approximately 1.5% to 3%, and capable of
providing Sable refinery with 300 000tpa of feed. Following
initial cash payments, the Company has elected and secured an
option to acquire a 95% interest in the license for the remaining
settlement value of US$1.5 million which will be settled through
the issue of 15 096 798 new Jubilee ordinary shares
(Acquisition Shares). The Acquisition Shares will be issued at a
price of 7.81 pence per share, being the 30-day volume weighted
average share price of Jubilee on the LSE on 19 June 2024.
Of the 15 096 798
Acquisition Shares, 1 509 680 will be locked in from
trading for a period of twenty-four months following admissions
with the remainder of shares held by the current owners who are
encouraged to retain their interests in Jubilee in order to share
in the expected value that Project M will bring to Jubilee
shareholders.
Project G
Jubilee concluded an agreement to
acquire a 51% interest in Project G. Project G is an established
open-pit mining operation. Project G will be ramped up targeting to
achieve a mine rate of 240 000 tonnes per annum at approximately 3%
to 4% copper grade by Q4 CY2024. Acquisition Two will be settled
through the issue of approximately 21 135 527 new Jubilee
ordinary shares (Shares) (assumed at the Issue Price). The final
number of shares will be confirmed upon conclusion of Acquisition
Two.
Acquisition Two is subject to
conditions precedent customary for transactions of this nature
including conclusion of the requisite approvals from the Zambian
authorities. Project G is poised to benefit from Jubilee's
expertise in sustainable mining practices and state-of-the-art
processing technology.
Of the approximately
21 135 527 Shares, 1 006 453 Shares will be locked
in from trading for a period of twenty-four months following
admissions, with the remainder of shares held by the current owners
who are encouraged to retain their interests in Jubilee, in order
to share in the expected value that Project G will bring to Jubilee
shareholders.
Issue of
Acquisition Shares and voting rights
The Acquisition Shares have been
issued, conditional on Admission (as defined below), as fully paid
and rank pari passu in all respects with the existing ordinary
shares, including the right to receive all dividends and other
distributions declared on or after the date on which they are
issued. Application will be made for the Acquisition Shares to
be admitted to trading on AIM and to be listed on the Altx of the
JSE Limited, which is expected to take place on or about 28 June
2024 (Admission).
Following Admission of the
Acquisition Shares, the Company's total issued share capital will
comprise 3 005 659 155 Ordinary Shares. As the
Company does not hold any Ordinary Shares in treasury, this figure
may be used by shareholders in the Company as the denominator for
the calculations by which they will determine if they are required
to notify their interest in, or a change to their interest in, the
share capital of the Company following Admission.
24 June 2024
**ENDS**
For further information visit
www.jubileemetalsgroup.com,
follow Jubilee on Twitter (@Jubilee_Metals) or contact:
Jubilee Metals Group
PLC
Leon Coetzer (CEO) /Neal Reynolds (CFO)
Tel: +27 (0) 11 465
1913
Nominated Adviser - SPARK Advisory
Partners Limited
Andrew Emmott/James
Keeshan
Tel: +44 (0) 20 3368
3555
PR & IR Adviser -
Tavistock
Jos Simson/ Gareth
Tredway
Tel: +44 (0) 207 920
3150
Joint Broker - RBC Capital
Markets
Farid Dadashev/Jamil Miah
Tel +44 (0) 20 7653 4000
Joint Broker -
WHIreland
Harry Ansell/Katy
Mitchell
Tel: +44 (0) 20 7220 1670/+44 (0)
113 394 6618
JSE Sponsor - Questco Corporate
Advisory Proprietary Limited
Alison McLaren
Tel: +27 (0)11 011 9207
About Jubilee
Jubilee is a low-cost, diversified
producer, specialising in the recovery of metal from previously
overlooked resources, such as unprocessed historical waste rock,
run-of-mine materials and tailings in South Africa and Zambia. The
Company's low-capex, modular processing facilities are deployed
close to these various types of material, producing high grade
concentrates for sale or further refining to finished metal at the
Company's downstream facilities. Production currently consists of
chrome, copper and platinum group metals (PGMs). The modular
processing facilities offer a platform for growth and the rapid
expansion of its operational footprint. Jubilee's success is
derived from operational excellence, a highly experienced
management team and a pioneering Technical Development
Centre.