Jubilee Metals Group PLC on Monday said it raised £13 million via a placing of new shares, of which net proceeds will be used towards its Zambian copper operations.

The London-based metal processing company with projects in South Africa and Zambia said it increased the minimum amount to £13 million from £10 million due to strong demand in the bookbuild.

It said 236.4 million shares were placed at a price of 5.5 pence per share. It expects admission to become effective on January 4.

Shares in Jubilee Metals were down 8.2% to 6.24 pence each in London on Friday afternoon.

The net proceeds will be used towards its Zambian copper operations to accelerate the implementation of its newly acquired copper waste rock project, in partnership with International Resources Holdings.

This includes paying an initial $1.8 million, due under the agreement to buy the copper waste rock dump announced on Tuesday; expanding the sulphide recovery circuits at its sable refinery to accommodate increased sulphide concentrate production from newly acquired projects; progressing the project development phase of the Mufulira slag project, with early-stage bulk trial and processing; and for general working capital purposes.

‘We have received overwhelming support for this very targeted fundraise and I thank shareholders for their strong support. 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,’ said Chief Executive Officer Leon Coetzer.

‘This very targeted raise offers us the opportunity to not only bring forward the expected timelines to implement the very exciting copper waste rock project, but to potentially scale-up the projected copper production profile of the project to far exceed our copper strategy of 25,000 tonnes per annum of copper.

‘Importantly, under the terms of the executed agreement with the IRH, our partnership affords us the ability to bring this project to full fruition with no further capital requirements from Jubilee while enjoying a fully funded position.’

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