Jubilee Metals secures Zambia copper waste rock project

The AIM-traded firm said the copper waste rock asset, estimated to exceed 350 million tonnes of material on the surface, presented substantial potential for copper extraction.

Preliminary surface sampling already indicated the presence of zones with copper grades surpassing 1.5%.

The endeavour, referred to as the Waste Rock Project, was poised to become a pivotal part of Jubilee's operations.

Jubilee said its technical services team had initiated an extensive resource definition and process technical review to finalise project implementation details and timelines within the next 60 days.

The company aimed to leverage its newly developed modular copper units to process over 20,000 tonnes of copper annually, targeting a cost of less than $4,000 per tonne of copper derived from the historically significant waste rock deposit.

To facilitate the successful execution of the project, Jubilee anticipated an overall investment of about $50m, covering mining equipment and project infrastructure.

The company's proficient team was prepared to construct and commission all modular copper units within 12 months, with plans to commence operations in the first quarter of 2024.

In a strategic move to finance and support this venture, Jubilee said it had entered into a binding funding term sheet with International Resources Holding (IRH), an Abu Dhabi conglomerate International Holding Company (IHC) affiliate.

IHC is the most valuable listed holding company in the United Arab Emirates and the second-most valuable in the Gulf Cooperation Council region.

Under the agreement, IRH would establish a dedicated special purpose vehicle (SPV) to fund the acquisition of the copper waste rock asset and the implementation of the processing solution.

IRH's commitment would include providing all the necessary capital for the SPV through a combination of equity and shareholder loans.

Additionally, Jubilee would assume a pivotal role in the SPV as it was appointed to design, implement, and operate the mining and processing solution.

"The transaction marks a significant milestone on our journey in Zambia, catapulting our copper expansion in the region," said chief executive officer Leon Coetzer.

"The Waste Rock Project, anchored by this substantial resource, will fast-track the rollout of our modular copper processing units in the country with the potential to far exceed our goal of reaching 25,000 tonnes of copper per annum.

"The binding funding term sheet that we have executed, affords Jubilee the opportunity to aggressively pursue its copper growth strategy in partnership with a prestigious group such as the IRH."

Coetzer said the partnership combines Jubilee's unique technical and operational experience with the strategic in-country copper focus and financial support of the IRH.

"The strategic significance of this partnership is further highlighted by the recently announced selection of IRH as the preferred strategic equity partner for Zambia's Mopani Copper Mines asset, which owns the Mufulira Slag Dump Project recently awarded to Jubilee.

"Jubilee and IRH share similar values in their commitment to sustainable investment through broad-based community involvement and prioritising local partnerships.

"I look forward to working with IRH as our partner in bringing this exciting project to full fruition."

At 1331 GMT, shares in Jubilee Metals Group were up 21.97% at 6.44p.

Reporting by Josh White for Sharecast.com.