REG - Jubilee Metals Group - Zambia Update, Corporate Update & Warrant Exercise

Jubilee MetalsAnnouncement

19/12/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20221219:nRSS0767Ka&default-theme=true

RNS Number : 0767K  Jubilee Metals Group PLC  19 December 2022

Jubilee Metals Group PLC

Registration number (4459850)

Altx share code: JBL

AIM share code: JLP

ISIN: GB0031852162

("Jubilee" or "the Company" or "the Group")

 

Dissemination of a Regulatory Announcement that contains inside information
according to UK Market Abuse Regulations. Not for release, publication or
distribution in whole or in part in, into or from any jurisdiction where to do
so would constitute a violation of the relevant laws or regulations of such
jurisdiction.

 

Zambia Copper and Cobalt Operations Update

Corporate Update

Exercise of Warrants

 

Jubilee, the AIM and Altx traded metals processing company, is pleased to
announce the successful completion of the water infrastructure upgrade at its
Roan Project and continued advances in the production of cobalt and copper
from waste at its Sable Refinery in Zambia.

 

As announced on 22 November 2022, the Company's new Roan copper concentrator
faced continued water supply interruptions that severely hampered its ability
to operate at design throughput levels. The installation of the new dedicated
water infrastructure and upgraded power and feed supply infrastructure have
been completed successfully with the restart of operations back to nameplate
capacity.

 

Significant progress continues to be made by Jubilee's technical and
operational teams, with the development and ramp-up to commercial level, of
new extractive methods for the recovery of copper and cobalt from historical
waste, at the Company's Sable Refinery.  These developments provide unique
solutions to unlocking the value from vast copper and cobalt containing
wastes.

 

Sable Copper Production Trial

 

As previously announced, the Company has been focused on a direct leaching
approach which by-passes the need for traditional power intensive smelting of
copper sulphide concentrates.

 

These trials have been extremely effective and not only allow for
significantly lower operating costs, but also for Sable to produce copper from
mixed materials such as copper sulphide and copper oxide ores. Jubilee
believes that this new approach to extraction offers significant growth
opportunities in the country. As a result, the Company is examining new
Run-Of-Mine material agreements with third party producers which offer the
potential to further enhance growth for its operations at the Sable Refinery.

 

Sable Cobalt Production Update

 

As previously announced, Jubilee is targeting the initial production of 50
tonnes of contained cobalt metal which is the equivalent of approximately 220
tonnes of final product, before ramping up to the 1 200 tonnes of contained
cobalt metal annual capacity, which equates to some 5 280 tonnes of final
product. Cobalt production from waste remains in-line with management's
expectations.

 

Solving the technical challenges places the Company in a unique opportunity to
pursue tremendous potential growth opportunities in the efficient recovery of
cobalt from historical wastes, including also from mixed copper cobalt
materials. The Company is currently considering to upscale the production of
cobalt through the potential acquisition of refining infrastructures to expand
its cobalt footprint in Zambia.

 

The additional cobalt revenue offers the Company further opportunities to
secure metal backed funding in support of the implementation of the Northern
Refining Strategy.

 

 

Corporate Update

 

The Company further announces that it has undertaken a restructuring of its
Executive Team in-line with its expanding production profile, and in
particular ahead of its next phase of growth in Zambia via its Northern
Refining Strategy.

 

As Jubilee continues to rapidly evolve and expand its operational footprint
and project portfolio, it is also required to continuously review and where
necessary expand its leadership within its Executive Team. This review will
inevitably lead to changes in certain leadership roles as the Company upskills
to meet the demands of a growing enterprise.

 

In this regard the Company has expanded its commercial and financial
management teams in South Africa and Zambia to both further strengthen its
corporate governance as well as dedicate commercial teams to Zambia in support
of its project execution team. During this restructure Mr Pedja Kovacevic,
currently, Chief Strategy Officer ("CSO") will also be assuming the role of
Group Chief Financial Officer ("CFO") with immediate effect. Pedja is a highly
experienced CFO with vast experience in the corporate funding and
international debt markets. The Company thanks the outgoing CFO, Peet van
Coller, and wishes him well in his future endeavours.

 

Leon Coetzer, CEO commented: "I am very pleased to provide an update on our
copper and cobalt operations in Zambia in what has been a truly remarkable
year for Jubilee.

 

"We have brought the entire Southern Copper Strategy into nameplate production
and next quarter will see a new source of revenue for Jubilee in the form of
first sales for our cobalt production.

 

"In Sable, we have now successfully implemented a new way of producing copper
in Zambia, which bypasses the need to smelt the material, which is expensive
and energy intensive. This new extraction approach allows for multiple ores to
be produced at once, similar to what we have achieved at our Inyoni PGM plant
in South Africa. This is a game changer for Jubilee and opens new
opportunities beyond our existing operations in Zambia.

 

"As we conclude 2022, we now focus our attention on unlocking the potential of
our Northern Refining Strategy in Zambia."

 

Exercise of Warrants

 

Jubilee also announces that it has received notification from a warrant holder
to exercise 5 000 000 existing warrants in the issued share capital of Jubilee
("the Warrant Shares") at a price of 3.375p (ZAR71.86c) per Warrant Share. The
exercise of Warrant Shares amounts, in aggregate, to a cash value of £0.17
million (ZAR3.59 million). This warrant exercise concludes all the warrants
held by the warrant holder at 3.375p.

The Warrant Shares are expected to be admitted to trading on AIM and listed on
the Altx of the JSE Limited on or about 23 December 2022 and will rank pari
passu with the ordinary shares of the Company in issue.

Total voting rights

The Company's total issued capital, after the issue of the Warrant Shares,
will be 2 694 854 150 ordinary shares. As the Company does not hold any
shares in Treasury, this figure may be used by shareholders in the Company as
the denominator for the calculations by which they will determine if they are
required to notify their interest in, or a change to their interest in, the
share capital of the Company following Admission.

 

United Kingdom

19 December 2022

For further information visit www.jubileemetalsgroup.com
(http://www.jubileemetalsgroup.com)   or contact:

 

Jubilee Metals Group PLC

Leon Coetzer

Tel:  +27 (0) 11 465 1913

 

Nominated Adviser - SPARK Advisory Partners Limited

Andrew Emmott/James Keeshan

Tel: +44 (0) 20 3368 3555

 

Joint Broker - Berenberg

Matthew Armitt/Jennifer Lee/Detlir Elezi

Tel +44 (0) 20 3207 7800

 

Joint Broker - WHIreland

Harry Ansell/Katy Mitchell

Tel: +44 (0) 20 7220 1670/+44 (0) 113 394 6618

 

JSE Sponsor - Questco Corporate Advisory Proprietary Limited

Sharon Owens

Tel: +27 (11) 011 9212

 

PR & IR Adviser - Tavistock

Jos Simson/ Gareth Tredway/Charles Vivian

Tel: +44 (0) 207 920 3150

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCTPBPTMTABBIT