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Jubilee Metals and BMR Group club together for Zambia project
Jubilee Metals Group announced on Wednesday that it has agreed to a shareholders' agreement and an operating agreement with BMR Group concerning the Kabwe surface project in Zambia.
Under the terms of the agreements, Jubilee Metals has been appointed the operator of the Kabwe Surface zinc, lead and vanadium project and will conclude the business plan and implementation of the project.
Leon Coetzer, chief executive of Jubilee Metals, said: "Our immediate next project deliverable is to present the project business plan to the newly formed joint venture company for approval by the board. I will be presenting the project execution plan to the Zambian authorities for approval in the coming days as part of our ongoing engagement with the Zambian mining department."
Jubilee will also be responsible for construction work and commissioning at the project.
Alongside this, the AIM traded company will provide BMR with loan funding of £2m for an effective 40% interest in Kabwe Operations Limited, the joint venture company that holds the Kabwe project.
In addition to the interest in the joint-venture Jubilee already holds a 29.01% stake in BMR.
"Our agreement with BMR calls for the final business and execution plan to be approved by the 15th of June 2018. We will continue with site preparation work and confirming equipment specifications during this time," said Coetzer.
In light of the agreement, BMR has cancelled facility and off-take agreements with African Compass International and has initiated steps to recover $109,000 transferred to the company.
As of 1115 BST, Jubilee Metals' shares were up 4.62% at 2.77p, while BMR Group's shares were unchanged at 1.90p.