Jubilee Metals agrees to sell large waste project to preferred bidder

Jubilee Metals Group PLC reported on Wednesday it has agreed to sell its large waste project for USD35.0 million after choosing a preferred bidder.

The London-based metal processing company operating in Zambia had received two binding offers for the project, which comprises waste copper material.

On the winning bid, the company said the transaction will proceed through a two-stage due diligence process.

The first stage will focus on confirmation of the contractual and regulatory legal framework governing the project and is expected to be completed within about 10 days.

Subject to this first stage, the preferred purchaser will make a payment of USD2.25 million to secure a further 45-day period of exclusivity during which it will complete its remaining due diligence.

After the due diligence, the balance of the USD35.0 million acquisition consideration will be settled over three years.

The transaction terms also provide the purchaser with the option to accelerate settlement of the outstanding consideration to within two years, in return for an agreed reduction in the total consideration payable to USD30.0 million.

Jubilee said on Wednesday the deal replaces the previously announced sale of 10 million tonnes of waste copper material from the large waste project for USD6.75 million.

In April last year, the metal processing company agreed to sell 10 million tonnes of an estimated 260 million tonnes of copper material at the project to a multinational metals company for USD6.75 million. Back then, it said it had started to “monetise” a large waste project.

In December 2023, Jubilee secured one of the largest copper waste rock assets in Zambia. Then in March 2024 it formed a partnership with Abu Dhabi-based International Resources Holding RSC that would invest in this dump.

Shares in Jubilee ended up 10% to 2.75 pence on Wednesday in London, and they finished flat at 55 rand cents in Johannesburg.

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Shin JohnYtv Market News

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