JUBILEE METALS GROUP PLC - Jubilee completes the acquisition of the Sable Zinc Refinery in Kabwe and appointment of joint Broker

Jubilee completes the acquisition of the Sable Zinc Refinery in Kabwe and appointment of joint Broker

Jubilee Metals Group PLC
(“Jubilee” or “the Company”)
Registration number (4459850)
AltX share code: JBL
AIM share code: JLP
ISIN: GB0031852162



Jubilee completes the acquisition of the Sable Zinc Refinery in Kabwe
Appointment of Joint Broker


Dissemination of a Regulatory Announcement that contains inside information according to
REGULATION (EU) No 596/2014 (MAR)


Jubilee Metals Group Plc ("Jubilee"), the AIM and Altx traded metals processing company, is pleased
to announce that the sale and transfer of the entire issued share capital in Sable Zinc Kabwe Limited
(“Sable Zinc”) to Jubilee has been completed (“Closing”), allowing Jubilee to commence with the
implementation of a fully integrated multi-metal refinery in Zambia.


Highlights
    •   The acquisition of Sable Zinc Refinery has been completed representing a major step for the
        advancement of the Kabwe Project
    •   The acquisition significantly reduces the Kabwe Project implementation time lines and project
        capital requirement
    •   The Refinery together with Jubilee’s Kabwe surface resources in excess of 6 million tonnes at
        surface, establishes a fully integrated multi-metal operational footprint in Zambia
    •   Jubilee intends to recommission the current copper/cobalt circuit during Q4 2019 to achieve
        earnings during the build phase of the zinc vanadium and lead circuit with first production of
        zinc and vanadium targeted for Q2 2020
    •   The acquisition expands Jubilee’s commodity basket to include copper, vanadium, zinc and
        lead
    •   This multi metal refining operation affords Jubilee the opportunity to rapidly expand its
        metals recovery footprint in Zambia which the Company is actively pursuing



Jubilee Chief Executive Officer Leon Coetzer said:

“Completing the acquisition of the Refinery is a key milestone in delivering Jubilee’s Zambian strategy
of establishing a fully integrated multi-metal recovery operation. The Refinery, which will be the only
one of its kind in Zambia, opens tremendous potential opportunities for Jubilee to significantly increase
its access to additional surface materials for further refining.
“The advancement of the Kabwe Project is in line with our group strategy to diversify earnings across
multiple commodities and jurisdictions. We are able to fund the acquisition and implementation of
the Kabwe project from our current cash reserves.”


Acquisition of Sable Zinc Refinery

Jubilee and Glencore plc through two of its subsidiaries (“Glencore”) entered into a Sale and Purchase
Agreement (“SPA”) for the acquisition by Jubilee of the entire issued share capital in Sable Zinc. Sable
Zinc owns the Sable Zinc Refinery (the “Refinery”) adjacent to Jubilee’s Kabwe Project. The transfer
of ownership of Sable Zinc from Glencore to Jubilee has been finalised after satisfaction of the
conditions in the SPA, including receiving consent to the transfer from the Zambian Mining Cadastre
Department.

Under the terms of the SPA, Jubilee has approved and made the first payment tranche of
US$6,000,000 to Glencore. The second payment of US$3,000,000 will fall due on the earlier of the
completion of the conversion of the Plant to a zinc processing plant or six months after Closing. The
third payment of US$3,000,000 will fall due on the earlier of commencement of commercial
production of any saleable product at the Plant or six months after the second payment.


The Kabwe Project

The Kabwe Project seeks to establish a fully integrated metal recovery and refining operational
footprint in Zambia. The Project combines access to large surface material with the adjacent multi-
metal refining capability. The Kabwe Project resource comprises an estimated 6.4 million tonnes (3.2
million JORC compliant) of surface assets containing 356,843 tonnes of zinc, 351,386 tonnes of lead
and 1.26% equivalent vanadium pentoxide. This excludes further third party sourced copper and zinc
rich mined material for further refining. The adjacent Refinery will be expanded to include a copper,
zinc, vanadium and lead refining circuit based on Jubilee’s extensive process development and
optimisation works program.

The Kabwe Project will be implemented over three phases as outlined below. Jubilee is fully funded
to deliver this development plan.


Phase 1: Upgrade and commissioning of the copper refining circuit with a targeted capacity of 3,000
tonnes of refined copper per annum, targeting implementation during Q4 2019.

Phase 2: Implementation of both the zinc and vanadium refinery circuit with an initial targeted
capacity of 8,000 tonnes per annum of zinc contained in a high grade zinc concentrate suitable for the
market and 1,500 tonnes per annum of vanadium pentoxide, targeting commissioning of the zinc and
vanadium refinery circuit during Q2 2020.

Phase 3: Implementation of the lead refining circuit with an initial targeted capacity of 11,000 tonnes
per annum of lead contained in a high-grade concentrate during Q2 2021.

The Kabwe Refinery process flowsheet offers flexibility with two separated fully equipped electro-
winning circuits able to produce either high grade copper or zinc with only minor adjustments. The
Company can allocate this refining capacity either to both metals individually or a combination of the
two metals depending on the prevailing market conditions to maximise returns.


Prior to taking ownership of the Refinery, Jubilee actively pursued the completion of the project
design and initiating final equipment selection to enable rapid implementation of the process
flowsheet. Please refer to Jubilee’s website which is being updated to show the project progress.

Appointment of joint broker

Jubilee has appointed WHIreland as joint broker together with Shard, in support of Jubilee’s focus to
broaden its institutional shareholder base.


United Kingdom

23 August 2019

For further information visit www.jubileemetalsgroup.com, follow Jubilee on Twitter (@Jubilee
Metals) or contact:

Jubilee Metals Group PLC

Colin Bird/Leon Coetzer
Tel +44 (0) 20 7584 2155 / Tel +27 (0) 11 465 1913

Nominated Adviser - SPARK Advisory Partners Limited
Andrew Emmott/Vassil Kirtchev
Tel: +44 (0) 20 3368 3555

Broker - Shard Capital Partners LLP
Damon Heath/Erik Woolgar
Tel +44 (0) 20 7186 9900

Joint Broker – WHIreland

Harry Ansell/Katy Mitchell
Tel: +44 (0) 20 7220 1670/+44 (0) 113 394 6618

JSE Sponsor - Sasfin Capital (a member of the Sasfin group)

Sharon Owens
Tel +27 (0) 11 809 7500

PR & IR Adviser - St Brides Partners Limited

Catherine Leftley/Juliet Earl
Tel +44 (0) 20 7236 1177

Date: 23/08/2019 11:15:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.