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(Alliance News) - Jubilee Metals Group PLC on Monday said the equity raised for its proposed Green Copper project in Zambia was increased by 30% from its original plan, amid strong demand in the bookbuild.
The London-based metal processing company with projects in South Africa and Zambia on Friday had said it planned to raise at least GBP10 million via a share placing.
Jubilee on Monday said the total gross proceeds from the placing rose to GBP13 million, through the placing of 236.4 million shares with institutional and other investors at a price of 5.5 pence each.
Jubilee shares had closed at 6.52p in London on Friday. The company has a GBP178.5 million market capitalisation.
The company said it will ask its shareholders to vote to approve the placing, which was not underwritten, at a general meeting on January 3.
The placing comes shortly after Jubilee announced last week it had secured one of the largest copper waste rock assets in Zambia and had formed a strategic partnership that will invest in this "significant" dump. It estimated the waste rock material on surface at more than 350 million tonnes.
Overall project costs, including mining equipment and project infrastructure, are likely to be around USD50 million, Jubilee said.
The metal processing firm also said then that it had signed a binding funding term sheet with Abu Dhabi-based International Resources Holding RSC to form a dedicated special purpose vehicle through which both the acquisition of the copper waste rock asset and implementation of the processing solution will be funded.
International Resources is affiliated to the Abu Dhabi conglomerate, International Holding Co PJSC.
Jubilee said it will hold a minimum of 30% funded position of the special purpose vehicle and manage its operations.
The price for the acquisition of the waste rock dump was GBP30 million, which is to be paid in instalments over a period of 18 months, and project costs are anticipated to be USD50 million.
On Monday, Chief Executive Officer Leon Coetzer said the company had received "overwhelming support" for the equity raise.
"Fundamental to this support was the recognition of the potential value and scale of copper production that this new copper waste-rock project affords Jubilee. The additional value in accelerating the implementation of this project over and above our current commitment to the expansion of both chrome and copper further adds to this potential value for Jubilee," Coetzer said.
By Artwell Dlamini, Alliance News reporter
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