Jubilee Metals Group PLC (LON:JLP) said it has conducted a placing of around 99.9mln new shares and 11.5mln existing shares at a price of 13p each, a 3% discount to its closing price on Thursday, with two supportive blue-chip institutional shareholders, one of which is new to the share register.
The AIM-listed metals processing firm said the investment has been made based on its earnings and what is said is “recognition of the accelerated implementation of its copper and cobalt strategy” which it said, “holds the potential for enhanced sustainable and quality earnings growth”.
Jubilee added that the investment has been facilitated by both the partial conversion of the convertible loan note held by ACAM LP, which facilitated the acquisition by Jubilee of the Sable refinery in 2019.
"This combined investment by two traditionally long term, supportive institutional shareholders is a milestone acknowledgement of the company's achievements and brings recognition to the successful implementation of our strategy to date and our focus going forward. The investment entry requirements for these institutions were enabled through ACAM LP agreeing to the partial conversion of the convertible loan note held by them, and in addition certain directors agreed to allocate shares owing to them by Jubilee in lieu of salary sacrifices, in recognition that the share register would be strengthened by the addition of these institutions”, Jubilee chief executive Leon Coetzer said in a statement.
"The partial conversion of the ACAM LP convertible loan reduces the group's borrowing and ongoing borrowing costs and is consistent with the restructuring of all historical debt held by the company into far less costly debt provided by alternative financial institutional facilities. On completion of the transaction all directors and officers maintain their current share option incentives”, the CEO added.
Coetzer continued by saying that the group’s South African operations are continuing to grow and contribute to earnings while its Zambian copper and cobalt strategy is now “moving at pace with the potential to produce significant earnings backed by our secured positions and a widely forecasted increasing copper price”.
“The success in Zambia demonstrates how Jubilee is perfectly poised to play a pivotal role in the processing of copper secondaries and tailings. This is an incredibly exciting period for Jubilee and we are thrilled to have the further support from new and existing institutional shareholders, and we look forward to the future with confidence", he said.
Shares in Jubilee rose 1.5% to 13.6p in mid-afternoon trading on Friday.