Jubilee Metals Group (LSE:JLP) has completed legal due diligence for the proposed sale of its Large Waste Project in Zambia, a transaction valued at approximately US$35 million, as the company continues its programme of asset disposals and investment in its Zambian copper operations.
The company expects to receive a deposit of US$2.25 million in the coming days, coinciding with the commencement of a 45-day technical due diligence period.
The proposed disposal remains subject to the completion of the technical review, with the transaction forming part of Jubilee’s strategy to redirect capital towards its existing copper mining, processing and refining activities in Zambia.
Together with approximately US$65 million in remaining cash proceeds from the sale of its South African operations, Jubilee expects potential cash inflows of up to US$100 million from the two transactions.
The anticipated proceeds would provide additional funding for the group’s Zambian copper development programme, although the Large Waste Project disposal has not yet been completed.
Jubilee said the planned sale is intended to reduce its exposure to the development requirements of the Large Waste Project while allowing the company to allocate resources to other assets within its portfolio.
The group is focusing on expanding its existing copper operations, including the Molefe Mine, where results from the second phase of drilling are expected shortly.
According to management, the company’s investment priorities include projects that can utilise its established mining, processing and refining infrastructure in Zambia.
These facilities include the Roan Concentrator, which processes copper-bearing feedstock, and the Sable Refinery, which forms part of Jubilee’s integrated copper production operations.
The company intends to combine processing activities involving third-party feedstock with the development of its own mining and exploration assets.
The proposed Large Waste Project disposal represents a further step in Jubilee’s restructuring of its asset portfolio following the sale of its South African operations.
Completion of the transaction and receipt of the remaining consideration will depend on the outstanding due diligence process and applicable transaction requirements.
Jubilee Metals Group is a copper producer and resource developer listed on London’s AIM market and the Johannesburg Stock Exchange’s AltX market. The company is focused on developing an integrated copper business in Zambia through mining, processing, refining and exploration activities.
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