Jubilee Secures Exclusive Rights to Large Waste Project in Zambia
Why we think this is good
The RNS announcement indicates that Jubilee has secured the exclusive rights to a large waste project in Zambia, which could significantly expand the company's copper portfolio. The reduced consideration and the company's due diligence efforts suggest a well-negotiated transaction with manageable risks. While the full financial details are not provided, the initial 10 million tonne material trade agreement demonstrates the project's potential value. Overall, the news appears positive for Jubilee's growth prospects.
Key Points
- Jubilee secures exclusive rights to Large Waste Project in Zambia for reduced consideration of $18 million
- Company has until mid-May 2025 to elect to acquire assets and settle remaining $11.5 million over 12 months
- Jubilee has entered into agreement to sell 10 million tonnes of material to multi-national metals company for $6.75 million
- Due diligence, including sampling, testing, and pilot trials, to inform Jubilee's decision to exercise option
Summary
Jubilee Metals Group, a diversified metals processor, has secured the exclusive rights to the Large Waste Project in Zambia for a reduced consideration of $18 million, down from the previous $30 million. The company has until mid-May 2025 to elect to acquire the assets and settle the remaining $11.5 million over 12 months. Jubilee has been performing due diligence on the project, including sampling campaigns, laboratory test work, and pilot scale trials, the results of which will inform the board's decision. The company has also entered into an agreement to sell 10 million tonnes of the estimated 260 million tonnes of material to a selected multi-national metals company, valued at $6.75 million. This will provide Jubilee with valuable insights into the performance of the material and confidence in the project's potential.