Jubilee has successfully concluded a placement of 236 million new ordinary shares, bringing the total gross proceeds from the offering to £13 million (approx.$16.5 million) for 5.5 pence per share.
Jubilee plans to utilise the revenues to expedite the implementation of its copper operations in Zambia and advance the Copper Waste Rock Project, which it has just acquired in conjunction with International Resources Holdings.
Proceeds will also be used for the initial payment of $1.75 million required under the agreement for the procurement of the copper waste rock dump, as well as to advance the design of the resource and process, which totals about $4.5 million.
The company will allocate about $5.7 million of the proceeds towards expanding the sulphide recovery circuits at its Sable Refinery in Zambia.
This expansion is necessary to accommodate the increasing production of sulphide concentrate resulting from recently acquired properties.
Jubilee intends to advance the Mufulira slag project's development phase with the implementation of early-stage bulk testing and processing.
This undertaking is anticipated to cost about $2.5 million.
“Fundamental to this support was the recognition of the potential value and scale of copper production that this new copper Waste Rock Project affords Jubilee,” said Jubilee chief executive Leon Coetzer.
“The additional value in accelerating the implementation of this project over and above our current commitment to the expansion of both chrome and copper further adds to this potential value for Jubilee.”
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
