JOHANNESBURG: Jubilee Metals Group, a diversified metals producer with operations in South Africa and Zambia, announced Thursday it has received a conditional binding offer of up to $90 million from a private mining and metals trading company to acquire its chrome and platinum group metals (PGM) operations in South Africa.
The proposed deal, subject to final agreements and shareholder approval, would allow Jubilee to retain rights to the Tjate Platinum project while focusing on expanding its copper operations in Zambia.
“The Board has reviewed the terms of the offer and feels it is an opportune time to accept a fair value offer for the chrome and PGM operations,” said CEO Leon Coetzer. “The South African business has reached maturity, while Zambia offers significant growth potential in copper.”
Strategic Shift to Copper
Jubilee cited limited growth opportunities in its South African chrome and PGM business, which primarily processes third-party ores. The company plans to redirect capital toward its Zambian copper projects, where strong market demand and higher margins present greater earnings potential.
Recent operational milestones include:
- Roan Concentrator achieving a run rate of 35,000–40,000 tonnes per month (tpm) of transitional reef ore, yielding 240–360 tpm of copper.
- Munkoyo Mine delivering 3,500 tpm of high-grade ore (over 2.5% copper) to Jubilee’s Sable Refinery.
- Project G advancing toward open-pit expansion.
The company also secured additional high-grade copper stockpiles near Roan and will part-settle a $3.1 million purchase with 74.7 million new shares issued at a 14% premium to its June 3 closing price.
Transaction Details
The $90 million offer includes upfront and deferred payments over three years, with reciprocal break fees if certain conditions are unmet. Absa Corporate and Investment Bank is advising on the deal.
Jubilee will review its dividend policy and provide shareholders with further details via a circular.
Refinery Expansion Delayed
The second tank-house at Sable Refinery, now slated for completion in Q1 2026, will increase capacity to 14,000 tonnes per year. Delays were attributed to prioritizing mining investments and processing trials at Roan.