REG - Jubilee Metals Group - Roll-out of Integrated Copper Strategy in Zambia

Jubilee MetalsAnnouncement

24/06/2024 07:00

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RNS Number : 4932T  Jubilee Metals Group PLC  24 June 2024

Jubilee Metals Group PLC

Registration number (4459850)

AIM share code: JLP

Altx share code: JBL

ISIN: GB0031852162

("Jubilee" or "the Company" or "the Group")

 

 

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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 (http://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
(http://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.

 

 

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