Jubilee Metals appointed sole operator of Zambian Kabwe project

Jubilee Metals on Monday became the sole operator of the Kabwe lead, zinc and vanadium project in Zambia after increasing its interest in Kabwe Operations to 87.5%.

The mines to metals firm has the option to acquire 100% of the Kabwe Project while minority interest-holder BMR Group, which is in itself 29.01% owned by Jubilee, retains a maximum of 12.5% of generated earnings.

In return, the AIM traded company has agreed that, from the effective date of the updated agreements, Jubilee shall fund the project by way of debt finance to the extent that it deems necessary.

Leon Coetzer, chief executive of Jubilee, says: "The agreements ensure that Jubilee takes full control of the funding requirements and execution of the Kabwe Project. We have been able to ensure that the success of the Kabwe Project remains independent of the financial position of BMR with the option to acquire 100% of the Kabwe Project."

Through the company’s interest in BMR, Jubilee now holds an approximate 91.5% effective interest in the Kabwe Project, where a recovery plant is currently under construction.

Jubilee Metals’ shares were up 10% at 2.75p at 1530 BST.