Jubilee Metals Group PLC on Monday said that it has concluded due diligence at Project G, its open pit copper mining project in Zambia.

The London-based metal processing company, which has projects in South Africa and Zambia, has also elected to buy a majority interest in Project G under revised terms, increasing its holding to 65% from 51%.

According to the terms of the agreement, Jubilee Metals will settle the acquisition value of $2.0 million in cash instead of shares, and has committed to investing a further $500,000 into the upgrading of Project G operations.

The project is expected to start operations and delivery of pre-concentrated run-of-mine to the Sable Refinery by December this year. It will ramp up over six months, in order to reach 3,000 tonnes per month of pre-concentrate material.

Resource drilling is currently underway, targeting a potential increase of production to 20,000 to 25,000 run of mine ore per month.

Additionally, Jubilee has also increased the allocation of power under a private power purchase agreement, announced in September. This means that it will be able to secure an additional 2 megawatts of power in order to ensure that all Zambian operations are fully supplied.

‘The strategic acquisition of two open- pit operations serves as an example of our ability to leverage our process capability and early mover advantage to secure significant near-surface copper resources which are already in operation,’ said Chief Executive Officer Leon Coetzer.

‘These assets’ predictable, high grades and our ability to owner manage the operations allowing us to control the optimal blend of feed ore to achieve the 25,000 tonne per annum copper target we have set for ourselves.’

Shares in Jubilee Metals Group were trading 0.6% lower at 4.60 pence each in London on Monday afternoon, and flat in Johannesburg at ZAC111.00 each.

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