Jubilee Metals Group PLC (AIM:JLP, JSE:JBL, OTC:JUBPF), a metals processing company, said it will settle all historical debt by converting it into equity.
ACAM LP has elected to convert US$7.8mln (£5.9mln) of loan notes into new shares at a conversion price of 2.81 pence per share, giving it a 7.9% stake in Jubliee.
The debt formed a key part in the funding of the acquisition and recapitalisation of Jubilee's Sable Refinery, which launched Jubilee's Zambian copper strategy.
"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 Jubliee chief executive Leon Coetzer.
“With Project Roan's integrated copper concentrator fast nearing completion and immanent production ramp-up, and Project Lechwe, our second planned copper processing facility, undertaking final design pilot runs, our fully funded and capitalised Southern Zambian Strategy becomes debt free - a fantastic position to be in.”
Jubilee said that being debt free means it should be able to achieve improved terms for any future fundraising.
"With our global metals processing strategy in mind, and with a very healthy balance sheet, we are confident that any future bank and structured funding that may be required to grow your company can be secured on substantially better terms,” it told shareholders.
ACAM, as a strategic shareholder in Jubilee, has expressed a keen interest to seek further funding opportunities with Jubilee in support of our growth strategy in Zambia, Jubilee said.