Jubilee: Acquisition of two near-surface copper mining operations

Jubilee concludes two copper resource transactions of operating open-pit mines accessing near-surface copper material (open-pit operations) which significantly increases its copper resource base (Acquisitions).

The Acquisitions are in support of the expansion of Jubilee’s Sable refinery (Sable) to target 16 000tpa of copper.

The acquisitions include:

• Project M – which has commenced with the delivery of material to Sable 3 months ahead of schedule targeting to reach 25 000tpm at a grade of 3-4% Cu within Q3 CY2024 with a project life expectancy exceeding 8 years (Acquisition One); and
• Project G – an operating open-pit copper mine targeting to ramp-up to 20 000tpm at a grade of 3-4% Cu Q4 CY2024 with a life expectancy in excess of 8 years (Acquisition Two).

Acquisition One will be settled through a combination of US$0.25 million in cash and US$1.5 million settled through the issue of 15 096 798 new Jubilee ordinary shares (Acquisition Shares).

The Acquisition Shares will be issued at a price of 7.81 pence per share (Issue Price) being the 30-day volume weighted average share price of Jubilee on the LSE on 19 June 2024. The current owners have elected settlement in Jubilee shares, which aligns their interests with Jubilee’s long-term copper strategy in Zambia.

Acquisition Two in the amount of US$2.1 million will be settled through the issue of approximately 21 135 517 new Jubilee ordinary shares (assumed at the Issue Price). The final number of shares will be confirmed upon conclusion of Acquisition Two.

Leon Coetzer, CEO commented: “The strategic acquisition of the two open-pit operations is an example of our ability to leverage our process capability to secure significant near-surface copper resources already in operation. Zambia holds numerous similar resource opportunities which we are actively pursuing.

Our offering to our resource partners incorporates a sustainable approach to mining and recovery of metals, which ensures lasting value to our stakeholders and distinguishes Jubilee from many potential competitors. The opportunity set is particularly large and capable of driving Jubilee’s future copper production well beyond the initial 25 000tpa target.

I am also pleased to report that our copper production is on track to meet our revised copper guidance of 3 250 to 4 000 tonnes.”