Jubilee Metals Group PLC (AIM:JLP, JSE:JBL, OTC:JUBPF) is to raise £10 million through a placing at 5.5 pence per share, earmarked specifically to help fund its recently announced Green Copper project in Zambia.
Green Copper will see Jubilee partner with Abu Dhabi-based International Resources Holding (IRH) to process 350 million tonnes of waste rock on the surface via a joint venture.
Purchasing the waste dumps will cost US$30 million, with an additional US$50 million in set expenditure.
Of the proceeds, US$1.75 million will pay the initial cost of buying the dumps with the rest earmarked for design and upgrades to existing facilities for the expanded throughput.
The placing price is a discount of approximately 19% to the closing price yesterday.
Leon Coetzer, Jubilee’s chief executive, said the partnership announced recently with IRH allows Jubilee to accelerate its copper from waste production profile without the associated capital burden.
“The money raised will allow us to accelerate the manufacturing of our new copper modules on these new projects and importantly secure the long lead items with suppliers," he added.
“The funds will also allow us to expand our plant at Sable by increasing the copper sulphide capacity to meet the increase in volumes.
“By fast-tracking this new waste rock project, we will be able to bring forward production and revenues quicker than funding from existing cash flow."