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LONDON (Alliance News) - Jubilee Metals Group PLC on Thursday said it has secured funding for its GBP9.2 million acquisition of the Sable zinc refinery in Kabwe, Zambia.
The acquisition and ramp-up are being financed by an equity raising of GBP11.1 million and a secured convertible loan note of GBP6.1 million from ACAM LP. The loan note is secured over Jubilee's assets in Zambia and has an interest rate of 12% per annum.
Jubilee has completed a placing of 491.8 million shares at a price of 2.25p per share to raise the GBP11.1 million, taking its share capital to 1.86 billion shares.
The acquisition is expected to cut the time to build the refinery by around 18 months with first metal to be delivered within a year following the acquisition. Moreover, the overall project capital needed to get to first metal has now been reduced to GBP18.3 million
The Kabwe project is to ramp up over the next two years to 40 tonnes per hour from 20 tonnes per hour, resulting in "significant amounts of zinc, vanadium and lead" and enhancing Jubilee's earnings.
Chief Executive Leon Coetzer said: "I am delighted that, after months of test work, flowsheet design and refinery acquisition negotiations, we can announce the full implementation plan for the Kabwe base metal project.
"My team and I are looking forward to managing an implementation programme to deliver to our shareholders this outstanding project on time and in budget."
"I am particularly pleased that we have been able to secure the support of large institutional funders in the equity placing which, is testimony to Jubilee's metals recovery strategy and the quality of the Kabwe project," he added.
Shares in Jubilee were down 2.6% at 2.39p on Thursday, while the Johannesburg Stock Exchange is closed for Human Rights Day.
