Jubilee Metals Group (AIM:JLP), the copper focussed small-cap, said legal due diligence on the disposal of its Large Waste Project (LWP) has been completed, with a $2.25 million deposit due within the next few days.
The completion triggers a 45-day period to finish technical due diligence and finalise transaction documentation on the sale, struck for total consideration of approximately $35 million.
Jubilee is selling the LWP to a preferred purchaser chosen in August after receiving two binding offers, in a deal the company has said carries a substantial premium to its original acquisition price. If the remaining due diligence and documentation are completed successfully, the $35 million will be settled over three years, with the first instalment due in December 2026.
The agreement replaces an earlier arrangement to sell 10 million tonnes of waste material from the LWP for $6.75 million, under which approximately 550,000 tonnes had already been collected, generating roughly $0.6 million for Jubilee.
Jubilee said the LWP consideration, together with the remaining cash proceeds of $65 million from the sale of its South African operations, offers cash inflows of up to $100 million, with the next instalment from the South African disposal, approximately $15 million, due in early January 2027.
"The disposal remains firmly aligned with our strategy to recycle capital into the accelerated growth of our existing Zambian copper operations, where we can leverage our established operating and processing footprint to target stronger returns," chief executive Leon Coetzer said.
The company frames the LWP sale as a shift of capital priorities toward its existing mining, processing and refining operations in Zambia, including the continued expansion of the Molefe Mine, which it describes as a lower-capital, lower-risk route to growing copper production than the greenfield waste project.
Jubilee said it expects to announce results from the ongoing Phase 2 drilling programme at Molefe within the next few days.