Jubilee selects preferred buyer for $35m Zambia waste project

Jubilee Metals Group has selected a preferred purchaser for its Large Waste Project (LWP) in Zambia, with the proposed transaction valued at US$35 million.

The integrated copper producer and resource developer said it received two binding offers for the greenfield project before selecting its preferred buyer.

The LWP would have required significant standalone capital investment to develop. Jubilee said the proposed transaction will allow it to unlock value from the project while avoiding that capital commitment.

The deal will now move into a two-stage due diligence process. The first stage will focus on confirming the contractual and regulatory framework governing the LWP and is expected to take about 10 days.

If that stage is completed satisfactorily, the preferred purchaser will make a US$2.25 million payment to secure a further 45-day exclusivity period for the completion of its remaining due diligence.

Once due diligence is completed and definitive transaction documents are signed, the outstanding US$35 million consideration will be paid over three years.

The purchaser will also have the option to accelerate payment within two years. Under this arrangement, the total consideration payable to Jubilee would be reduced to US$30 million.

Jubilee said its management has satisfied itself that the preferred purchaser has the ability to meet the agreed consideration.

The proposed transaction also replaces an earlier agreement announced by Jubilee for the sale of 10 million tonnes of waste material from the LWP for US$6.75 million.

Approximately 550,000 tonnes of the waste material have been collected to date, generating about US$600,000 in payments to Jubilee.

The LWP transaction forms part of Jubilee’s broader strategy to develop its copper and resource-processing operations in Zambia while managing the capital requirements associated with its project portfolio.