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(Alliance News) - Jubilee Metals Group PLC on Wednesday its shareholders have approved the equity raise for its proposed Green Copper project in Zambia.
The London-based metal processing company, with projects in South Africa and Zambia, said last month it intended to raise GBP13 million through a conditional placing of 236.4 million new shares with new and existing investors at a price of 5.5 pence each.
The company had decided to increase the total gross proceeds from GBP10 million originally planned, thanks to strong demand in the bookbuild.
At a general meeting held on Wednesday, Jubilee said its shareholders okayed the placing by the requisite majority votes.
After the capital raise, the number of shares in issue will expand to 2.97 billion.
Jubilee shares shed 2.4% to 6.64 pence in London on Wednesday afternoon, handing it a market capitalisation of GBP182.0 million. In Johannesburg, shares fell 1.8% to ZAR1.60. The issue of new shares is generally dilutive.
The placing comes after Jubilee announced last month 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.
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.
By Artwell Dlamini, Alliance News reporter
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