Jubilee and Galileo’s co-development agreement to boost Molefe Mine
Jubilee, the Zambia copper-focused producer, closed a project development agreement with Galileo Resources for the implementation of an accelerated resource exploration program of Jubilee’s Molefe Mine in Zambia.
The agreement combines Jubilee’s established in-country operational and processing expertise with the exploration and geological expertise of Galileo. This combined expertise enables the dedicated focus by the responsible teams on each of the critical project workstreams namely, the continued management of the mining operations, the focused implementation of an on-site processing solution, and the resource definition drilling and exploration program, both for the Molefe Mine and potential targeted neighbouring areas, which have been secured by Jubilee.
The agreement offers Galileo the right to earn up to a 23.75% interest in the Molefe Mine holding company, with Jubilee retaining a 71.25% interest and the remaining 5% being held by a local Zambian firm, through the funding of an exploration and resource development program of Molefe Mine. Jubilee’s current capital investment into Molefe Mine is secured through a preferential earnings right until its investment has been recovered fully from Molefe Mine’s future earnings.
Leon Coetzer, CEO of Jubilee, commented:
“We are delighted to have found a partner with such an established track record in Zambia for the co-development of Molefe. The combined skill set of the two teams is seldom available to a single mining project of this size.
The joint agreement enables Jubilee to dedicate its focus on the day-to-day operations and the development of the processing solution for the Molefe Mine. Outsourcing the mine planning and resource measurement to Galileo, which has an exceptional team with decades of experience and a wealth of in-country and African knowledge, was a natural and pragmatic option.
The Jubilee operational team is looking forward to working with the Galileo operational team to accelerate the development of the Molefe Mine project.
The joint shareholding in Molefe Mine ensures a common purpose to develop this opportunity and offer shareholder returns – potentially one of the most significant, major copper deposits in the Central province of Zambia.”
