Jubilee Metals Lines Up Waste Project Sale to Fund Lower-Risk Copper Growth

What has Jubilee Metals announced?

Jubilee Metals Group PLC has received two binding offers for the outright acquisition of its Large Waste Project in Zambia.

Both offers value the project at what Jubilee describes as a substantial premium to its original acquisition price. However, neither the proposed sale price nor the original acquisition price has been disclosed.

The company shortlisted two potential purchasers after reviewing interest from several international firms. Jubilee says they were selected based on the strength of their offers and their operational track records in Zambia.

A preferred purchaser has not yet been chosen. Jubilee expects to provide further details once that selection has been made and definitive transaction agreements have been concluded.

The strategic argument is straightforward: rather than committing significant capital to a new standalone development, Jubilee wants to sell the asset and invest the proceeds into its existing Zambian operations.

The full details can be found in the original company announcement.

The key figures

Item	Detail
Binding offers received	2
Large Waste Project sale price	Not disclosed
Final acquisition payment	US$5.0 million (£3.8 million)
New Jubilee shares being issued	150,489,090
Issue price	2.5p per share
Dilution	4.5% of enlarged share capital
Enlarged issued share capital	3,381,330,240 shares
Initial purchaser deposit due	27 August 2026
Final due diligence period	Up to 90 days
Deferred sale instalments	Up to three years
Combined potential cash inflows referenced	Nearing US$100 million

The near-US$100 million figure is not solely the expected Large Waste Project consideration. It combines the proposed disposal proceeds with remaining cash from Jubilee's previously announced South African operations sale and the sale of non-core waste assets.

Why Jubilee wants to sell

Jubilee describes the Large Waste Project as a greenfield development. Greenfield projects are built largely from scratch, generally requiring more capital and carrying greater construction and execution risk than expanding an existing operation.

Management believes that Jubilee can earn stronger returns by directing capital towards assets that benefit from its existing mining and processing footprint.

A particular priority is the expanded Molefe Mine operation, where Jubilee wants to install an on-site copper processing facility. Its longer-term vision is to turn Molefe into an integrated copper mining and processing hub.

This represents a change in how Jubilee intends to pursue growth, rather than an exit from Zambian copper. The company is monetising one capital-intensive asset while retaining what it describes as its core mine-to-metals investments.

The potential cash inflow should give management greater flexibility to fund expansion without placing the same level of reliance on fresh equity or additional debt. Exactly how much flexibility it gains will depend on the final sale price, payment schedule and completion of the wider disposals.

Jubilee is also evaluating other opportunities in the country, including a collaboration with Galileo Resources on a Zambian copper project.

A positive transaction, but not a completed one

The receipt of two binding offers is more meaningful than early expressions of interest. The potential purchasers have completed initial due diligence, which led to the offers being submitted.

Even so, several steps remain.

The successful purchaser must make an initial deposit by 27 August 2026. It will then receive up to 90 days to complete final due diligence. If that process is completed successfully and a due diligence certificate is issued, definitive agreements are due to be executed within 10 days.

That leaves transaction risk on the table. The preferred purchaser has not been selected, the sale consideration remains undisclosed and final due diligence has not been completed.

The consideration will also not necessarily arrive at once. The remaining balance is expected to be paid through instalments over a period of up to three years. That deferred structure means the headline value and the immediately available cash could be quite different.

For investors, the quality of the final agreement will therefore depend on more than the sale price. The size of the deposit, instalment timing, payment protections and conditions attached to completion will all matter.

The 4.5% dilution explained

Separately from the proposed disposal, Jubilee is completing its original acquisition of the Large Waste Project.

The project's seller had the right to choose how it received the final US$5.0 million payment and has elected to take new Jubilee shares. Jubilee will issue 150,489,090 shares at 2.5p each, equal to the closing share price on 5 August 2026.

Those shares represent 4.5% of Jubilee's enlarged issued share capital. Existing shareholders will therefore own a smaller percentage of the company after admission, assuming they do not acquire additional shares.

The shares are expected to be admitted to AIM and the Altx of the JSE on or around 14 August 2026. They will rank equally with Jubilee's existing ordinary shares.

Management argues that this dilution is offset by the premium expected on the asset's sale. That may prove reasonable, but investors cannot test the claim fully until Jubilee discloses both the final disposal consideration and more detail about the payment terms.

Potential benefits for shareholders

The announcement offers several possible positives:

• Jubilee could crystallise a gain by selling the project above its acquisition price.
• Capital can be redirected towards established operations that management believes offer higher returns.
• The company avoids taking on the full cost and execution risk of developing a standalone greenfield operation.
• Combined disposal proceeds nearing US$100 million could strengthen the balance sheet.
• Both potential purchasers have expressed interest in wider strategic partnerships involving Zambian waste and tailings assets.

Tailings are materials left after valuable minerals have been extracted from ore. Jubilee specialises in recovering additional value from previously processed or underutilised material.

The possible partnerships could allow Jubilee to participate in further projects near its processing facilities without carrying every development burden alone. At this stage, however, no wider collaboration agreement has been disclosed.

The main risks to watch

The most immediate risk is that the disposal has not completed. Final purchaser selection, due diligence and definitive documentation are still outstanding.

There is also limited financial visibility. Jubilee has not disclosed the value of either binding offer, making it impossible to calculate the actual premium or judge the transaction against the project's potential long-term value.

Deferred payments create counterparty and timing risk. Jubilee may recognise an attractive total consideration but receive part of the money only gradually over three years.

Finally, the 4.5% share issuance is real and immediate dilution. The strategic benefits of selling the project must ultimately outweigh both that dilution and the value Jubilee is giving up by transferring ownership.

What investors should watch next

The next announcement should identify the preferred purchaser and provide the missing transaction terms. The most important details will be the total consideration, upfront deposit, instalment schedule, completion conditions and any protections covering deferred payments.

Investors should also look for a clear capital allocation plan. Jubilee says the proceeds will accelerate investment in its existing Zambian operations, particularly Molefe, but the precise spending timetable and expected operating benefits have not been disclosed.

Strategically, the decision is understandable. Jubilee is choosing to fund expansion around infrastructure it already operates rather than develop a higher-risk project from the ground up. The balance-sheet case could be compelling, especially when combined cash inflows are nearing US$100 million.

The remaining question is valuation. Until the final sale price and contractual terms are published, shareholders can see the strategic direction and the dilution, but not yet the full economics of the deal.