Shares in Jubilee Metals Group PLC (AIM:JLP, JSE:JBL, OTC:JUBPF), the integrated copper producer and resource developer in Zambia, rose 6% to 2.65 pence on Wednesday.
The company has selected a preferred purchaser for its Large Waste Project, which has offered total acquisition consideration of $35 million.
The sale follows the receipt of two binding offers for the project, announced on 10 August.
The transaction will proceed through a two-stage due diligence process, with the first stage expected to conclude within approximately ten days.
Subject to satisfactory due diligence and definitive transaction documentation, the balance of the $35 million consideration will be settled over an agreed three-year instalment period.
The balance of the consideration will be settled over an agreed three-year instalment period once due diligence and documentation are finalised.
The purchaser can accelerate settlement to within two years in return for reducing the total consideration payable to $30 million.
The transaction incorporates and replaces a previously announced sale of 10 million tonnes of waste material for $6.75 million, with about 550,000 tonnes collected and approximately $0.6 million paid to Jubilee.
Jubilee said the disposal supports its strategy of prioritising capital towards its existing mining, processing and refining operations in Zambia.
