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Jubilee Metals has received two offers for its large waste project (LWP) in Zambia and plans to redirect capital from the project into the expansion of its existing copper operations.The London- and Johannesburg-listed metals group said on Tuesday it had shortlisted two potential buyers after reviewing expressions of interest from several international companies. It expects to select a preferred buyer and conclude a final agreement within two weeks.Jubilee has not disclosed the value of the offers, but said the consideration would represent a substantial premium to the price it originally paid for the LWP.The company said the disposal would allow it to allocate capital to existing operations in Zambia, including the planned on-site copper processing facility at its Molefe Mine operations.“The LWP is a greenfield development that would require significant capital and carries greater execution risk than expanding Jubilee’s existing operations,” said CEO Leon Coetzer.“Our investment into defining the LWP has enabled us to attract binding offers for the asset at a substantial premium to the original purchase price, allowing us to redeploy the funds towards investment into the expansion of our existing operations.”The successful buyer will be required to make an initial deposit by August 27 and will have up to 90 days to complete final due diligenceThe offers are subject to further due diligence and the conclusion of definitive agreements, so the sale has not yet been completed.Jubilee said proceeds from the disposal, together with remaining proceeds from the previously announced sale of its South African operations and the disposal of non-core waste assets, would result in cash inflows nearing $100m.The company has previously targeted copper production of 25,000 tonnes a year from its Zambian operations and plans to expand its mining and processing activities.The two prospective buyers have also expressed interest in working with Jubilee on other waste assets in Zambia, including projects near its existing processing facilities. Those projects are still being evaluated.Under the terms of the offers, the successful buyer will be required to make an initial deposit by August 27 and will have up to 90 days to complete final due diligence. Once that process is completed, the final agreements are expected to be signed within 10 days. The remaining purchase consideration will be paid in instalments over up to three years.Jubilee acquired the LWP in stages, with $5m of the purchase price still outstanding. The seller has opted to receive that final payment in Jubilee shares rather than cash.Business Day
