The project has projected production of 12,000 tonnes (t) of copper (Cu) at production cost A$3,381/tCu (US$2,569/t) compared to a current price of US|$6,000/ t
In addition, there is a further 35,000t of copper resources on the surface, while other tenements on the project also have exploration potential.
Jubilee expects to be generating cashflow within six months of completing the acquisition.
The dumps stem from Resilience Mining Australia’s Leigh copper mine. RMA will receive A$8mln payable in stages and dependent on certain milestones being hit.
Leon Coetzer, Jubilee’s chief executive, said: "The execution of this Term Sheet demonstrates Jubilee's ability to apply its processing success and expertise in the recovery of platinum and chrome to associated base metals such as copper.
The expertise that Jubilee holds in the processing of near surface materials and tailings is easily transferred to minerals that fall within the PGM and Base Metals grouping, he said, while Australia is a country he wants Jubilee to target
The move into copper was based on strong underlying fundamentals for the metal in the short and mid-term, he added.
“Discussions are progressing favourably to secure further opportunities in both the platinum and associated base metals arena and we remain confident to secure further such opportunities in the short term."