Jubilee Metals Group PLC (AIM:JLP, JSE:JBL, OTC:JUBPF) has received notice of the conversion of its outstanding convertible loan notes, valued at US$7.8 million and held by ACAM LP.
The ACAM convertible loan note formed a key part in the funding of the acquisition and successful recapitalisation of the Sable Refinery which launched Jubilee's Zambian copper strategy.
The conversion completely eliminates Jubilee's external debt position in relation to its Zambia operations and releases all securities held over Jubilee's Zambian assets.
The settlement of all debt and release of the security paves the way for Jubilee to leverage its balance sheet for structured debt funding of its Zambian copper strategy.
Neither the Zambian nor the South African operations carry any further long term secured debt.
The conversion accounts for shares representing approximately 7.9% of the enlarged issued capital of the company.
"The conversion of all of Jubilee's debt to ACAM is a historic moment for the company and a ringing endorsement of the success of our strategy to date and our focus going forward,” said Leon Coetzer, chief executive of Jubilee.
“Having ACAM's support as an institutional investor over recent years, and indeed going forward remaining a substantial investor, has been critical in the in the acquisition of our Zambian assets, including the Sable Refinery, establishing the crucial foundation for entry into Zambia and the development and implementation of our copper and cobalt strategy.“
The company has also received notification from a warrant holder to exercise 2.9mln existing warrants, representing 0.11 % of the enlarged issued share capital.