TIDMJLP
RNS Number : 5919J
Jubilee Metals Group PLC
24 August 2021
Registration number (4459850)
Altx share code: JBL
AIM share code: JLP
ISIN: GB0031852162
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED
UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014
WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL)
ACT 2018, AS AMED. ON PUBLICATION OF THIS ANNOUNCEMENT VIA A
REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO
BE IN THE PUBLIC DOMAIN.
Jubilee Metals Group PLC
("Jubilee" or "the Company" or "the Group")
Jubilee and Mopani Copper Mines Plc enter into binding MOU for
Refining Facility for Copper and Cobalt Tailings Projects and
Copper Implementation Update
Jubilee, a leader in metals processing with operations in Africa
(AIM: JLP/Altx: JBL), is pleased to announce the execution of a
binding Memorandum of Understanding with Mopani Copper Mines Plc, a
subsidiary of ZCCM Investment Holdings Plc in Zambia, ("Mopani",
"ZCCM" and collectively the "Parties") for the implementation of
additional copper and cobalt refining capacity through the
recapitalisation of existing refining capacity placed under care
and maintenance by Mopani (the "Agreement"). This additional
refining capacity targets to increase Jubilee's existing copper
refining capacity by a further 17 000 tonnes of copper per annum
(the "Project") and, together with the Sable Refinery, increases
the Group's total potential refining capacity to in excess of 31
000 tonnes per annum. The Project will establish Jubilee's Northern
Zambian refining footprint for the refining of the copper and
cobalt concentrates produced at Jubilee's Kitwe and the Luanshya
copper and cobalt tailings. Jubilee's Sable Refinery will be
dedicated to the refining of concentrates produced by its Project
Roan currently under construction and set to commence commissioning
in November 2021 as well as its copper tailings at Kabwe and
contracted 3(rd) party ore suppliers.
The Agreement recognises the significant synergies offered
through the Project to the Parties. The Agreement under a
collaborative framework brings together Jubilee's expertise in the
processing of tailings and Mopani's established refining footprint
with immediate access to existing refining infrastructure under
pinned by an approximate 275 million tonnes of surface copper and
cobalt tailings within the region. Under the Agreement Jubilee is
able to accelerate the implementation of its Zambian copper
strategy at significantly reduced capital and project risk with the
potential of increasing its production rates to utilise the
available refining capacity.
The Agreement holds the benefit to Mopani to gain additional
copper units for its smelting operations via a first right of
refusal for off-take at market rates of copper sulphide
concentrates produced by the Project, while all oxide associated
copper will be refined by the Project to copper metal. This will be
achieved by Jubilee refurbishing and expanding existing refining
and supporting infrastructure at Mopani ("Targeted Refining Area")
which is currently decommissioned and does not form part of
Mopani's future business plan. ZCCM is a partner to the Project
through its joint ownership of certain of the copper tailings
material.
Highlights
-- Jubilee establishes a refining presence at both its Sable
Refinery in the South as well as at Kitwe in the North to better
serve all of its secured copper & cobalt tailings projects -
targeting a combined refining capacity of 31 000 tonnes of copper
units per annum
-- Jubilee now able to accelerate the implementation of its
Zambian copper strategy at significantly reduced capital and
project risk
-- The Agreement secures access to significantly increased
refining capacity which offers Jubilee not only the potential to
bring forward its stated target of 25 000 tonnes of copper units
per annum but also to surpass the target by utilising the combined
refining capacity on offer
-- The Agreement recognises the synergies offered between
Mopani, as one of Zambia's leading copper producers, and Jubilee as
an established specialist, processor of choice for tailings and
secondary materials
-- Jubilee and Mopani agree to collaborate on the Kitwe and
Luanshya copper and cobalt tailings project to fast track the
implementation of the Project which has access to more than 275
million tonnes of tailings
-- Jubilee secures unrestricted exclusive access to the Targeted
Refining Area for the design and implementation of the Project
-- Once upgraded the Targeted Refining Area increases Jubilee's
access to copper refining capacity by an additional 17 000 tonnes
of copper per annum and will include a cobalt refining circuit
-- Under the Agreement, Mopani is offered the first right to the
offtake of the copper sulphide concentrate at market related terms
produced by the Project, while the copper oxide associated material
will be refined to metal by the Project
-- In addition, Mopani has offered the Project a long-term acid
supply agreement for the recovery and refining of the copper and
cobalt containing tailings
-- The Agreement offers the opportunity for accelerated investment into the region
-- Jubilee is committed to prioritise local employment for the
accelerated Project implementation
-- Project Roan successfully navigated the challenges posed by
Covid restrictions and is set for completion of construction to
commence commissioning during November 2021
Leon Coetzer, CEO of Jubilee, commented:
"The Agreement is structured within a collaborative framework
which recognises each party's contribution to the ultimate success
of the project and establishes a mutually beneficial partnership to
fast track the implementation of our copper and cobalt tailings
projects.
"The Agreement endorses the mutual respect between Mopani and
Jubilee and the joint value offered by Jubilee refurbishing and
expanding Mopani's decommissioned copper and cobalt processing
facilities. I am delighted by the Agreement reached which sets into
motion the accelerated implementation of our Kitwe and Luanshya
copper and cobalt tailings projects to reach even sooner our target
of 25 000 tonnes of copper per annum.
"The Agreement will see Jubilee refurbish and expand some of
Mopani's processing facilities currently not in use and removes the
need to build a new processing facility to process the nearby
tailings deposits we secured last year. This Agreement with Mopani
directly improves both our expected project timelines and required
project capital while reducing overall project risk through the
access offered to existing refining infrastructure.
"Our engineers are already on-site working alongside the Mopani
team to upgrade the detail Project designs as we accelerate the
implementation.
"I look forward to working with the Mopani team as we deliver
this Project and continue to further explore opportunities for
collaboration.
"Our Project Roan implementation team has performed
exceptionally well to overcome the logistics challenges posed by
shifting COVID restrictions and have now secured the release of all
imported equipment for the completion of the project which is now
firmly set to commence commissioning in November of this year."
Rationale and Further Details of the Agreement
As previously announced, during 2020 Jubilee entered into joint
venture agreements to secure rights to process over 300 million
tonnes of copper and cobalt containing tailings in Zambia. The
copper and cobalt tailings are located in three central locations
in Zambia. With the addition of the refinery at Mopani the project
naming convention has been updated for clarity as follows:
- Southern Refinery Strategy (14 000 tpa capacity) which
incorporates the Sable Refinery together with Project Roan located
in the Ndola area; and
- Northern Refinery Strategy (17 000 tpa capacity) which
incorporates the newly targeted refinery at Mopani, called Leopard
together with the copper tailings project in the Luanshya area,
called Project Lechwe (previously Elephant 1), as well as the
copper and cobalt tailings in the Kitwe area called Project
Elephant (previously called Elephant 2). Jubilee has secured
additional copper and cobalt tailings at Mufulira which is
currently being sampled to confirm the quantity and quality and
will form part of the Project Elephant resource.
Jubilee is planning to construct a processing facility at each
of the three locations. T he first of the processing facilities is
under construction at Project Roan, which targets a ramp-up over
three phase to reach full production to a rate of approximate 10
000 tonnes of equivalent copper units per annum with commissioning
scheduled to commence in November 2021 and reaching full production
by end of Q1 2022. Roan commenced with the delivery of early
concentrate as part of its phase 1 commissioning to Sable Refinery
in April of this year.
The completion of the design work for the Company's second
copper processing facility, Project Lechwe, whereby Jubilee has
secured the rights to approximately 160 million tonnes of copper
containing surface tailings, is progressing well and remains on
track to enter the execution phase for the project by end August
2021. Project Lechwe targets to commence production during Q4 2022
targeting a production rate of 7 500 copper units per annum as part
of the Northern Refinery Strategy.
To date the extent of the processing facilities were determined
by the refining capacity at the Company's Sable Refinery, currently
limited to 14 000 tonnes per annum. Jubilee has a set target to
expand its access to refining capacity, to achieve a targeted 25
000 tonnes of copper units per annum.
The Agreement entered into between Jubilee and Mopani captures
the binding key terms under which the Parties agree to collaborate
on the implementation of Project Elephant, satiated adjacent to
Mopani's refinery. The detailed joint services agreements will be
further captured in a Collaboration Agreement between the Parties.
The Agreement offers Jubilee the potential to incorporate the
nearby Project Lechwe, which is scheduled to enter the execution
phase by the end of August 2021. Combined the two projects have
secured access to more than 275 million tonnes of copper and cobalt
tailings and targets a combined annualised production rate of
approximately 15 000 tonnes of copper units.
Under the Agreement it is envisaged that the copper and cobalt
tailings material from project Elephant, which is partly owned by
the ZCCM, will be upgraded and processed through a dedicated
processing and refining facility based on the recapitalisation by
Jubilee of existing refining infrastructure located at Mopani
(Targeted Refining Area). The Targeted Refining Area will hold the
potential to produce up to 17 000 tonnes of copper units per annum
in addition to Sable Refinery's 14 000 tonnes per annum capacity.
The Targeted Refining Area is currently not utilised by Mopani and
does not form part of Mopani's existing operational strategy. The
Agreement offers the opportunity to refurbish and bring back into
operation this decommissioned Targeted Refining Area offering an
expanded copper refining footprint at Mopani and the associated
direct investment and employment into the region.
United Kingdom
24 August 2021
**ENDS**
For further information visit www.jubileemetalsgroup.com or contact:
Jubilee Metals Group PLC
Colin Bird/Leon Coetzer
Tel +44 (0) 20 7584 2155 / Tel +27 (0) 11 465 1913
Nominated Adviser - SPARK Advisory Partners Limited
Andrew Emmott/James Keeshan
Tel: +44 (0) 20 3368 3555
Broker - Shard Capital Partners LLP
Damon Heath/Erik Woolgar
Tel +44 (0) 20 7186 9900
Joint Broker - WHIreland
Harry Ansell/Katy Mitchell
Tel: +44 (0) 20 7220 1670/+44 (0) 113 394 6618
JSE Sponsor - Sasfin Capital (a member of the Sasfin group)
Sharon Owens
Tel +27 (0) 11 809 7500
PR & IR Adviser - Tavistock
Jos Simson/ Gareth Tredway/Charles Vivian
Tel: +44 (0) 207 920 3150
PR & IR Adviser - St Brides Partners
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