Jubilee Metals’ Share Price Plunged 16.1% on £10M Capital Raise

The Jubilee Metals Group PLC (LON: JLP) share price plunged 16.09% as of 09:13 GMT after announcing plans to raise up to £10 million (about US$12 million), before expenses, by issuing new ordinary shares in the company’s capital to new and existing eligible investors for 5.5 pence per share.

On December 12, 2023, Jubilee announced a significant venture involving a copper waste rock dump in Zambia, estimated to contain around 350 million tonnes of material with a copper grade of 1.5%. Jubilee has partnered with Abu Dhabi's International Resources Holding RSC Limited (IRH) to facilitate this project to create a special purpose vehicle (SPV). 

The SPV, expected to be established by the end of January 2024, will oversee the acquisition of the copper waste asset and the implementation of processing solutions. Jubilee will maintain at least a 30% funded interest in the SPV and will manage its daily operations, including the design and operation of the processing solution.

The acquisition of the waste rock dump has a price tag of US$30 million, payable over 18 months, with an initial payment of US$1.75 million. The overall project costs are anticipated to be around US$50 million. 

This initiative, known as the Green Copper Project, adds to Jubilee's ongoing expansion in copper production through its Roan concentrator and Sable refinery operations and its chrome operations in South Africa. 

The company is focused on raising capital for this new project to ensure its swift implementation while continuing to invest in expanding existing copper and chrome operations.

This funding will cover the initial payment for acquiring the copper waste rock dump, expand the sulphide recovery circuits at the Sable Refinery, advance the Mufulira slag project's development phase, and provide general working capital.

Leon Coetzer, CEO of Jubilee, commented: “Jubilee's copper portfolio continues to expand in Zambia as demonstrated by our ability to secure what we believe to be the best waste rock projects. The partnership announced recently with Abu Dhabi based IRH is a hugely exciting new venture which has the potential to catapult our growth and copper production profile. This partnership affords Jubilee the opportunity to accelerate its copper from waste production profile without the associated capital burden.”

Jubilee Metals share price. 

The Jubilee Metals Group share price plunged 16.09% to trade at 5.58p from Thursday’s closing price of 6.65p.