Jubilee Metals Group plc (LON:JLP), the Zambia copper focused producer, has announced the execution of a co-operation and project development agreement (Agreement) with Galileo Resources Plc (Galileo), for the implementation of an accelerated resource exploration program and the development of Jubilee’s Molefe Mine in Zambia (Project).
The Agreement combines Jubilee’s established in-country operational and processing expertise with the exploration and geological expertise of Galileo. This combined expertise enables the dedicated focus by the responsible teams on each of the critical project workstreams namely, the continued management of the mining operations, the focused implementation of an on-site processing solution, and the resource definition drilling and exploration program, both for the Molefe Mine and potential targeted neighbouring areas, which have been secured by Jubilee.
The Agreement offers Galileo the right to earn up to a 23.75% interest in the Molefe Mine holding company, with Jubilee retaining a 71.25% interest and the remaining 5% being held by a local Zambian firm, through the funding of an exploration and resource development program of Molefe Mine. Jubilee’s current capital investment into Molefe Mine is secured through a preferential earnings right until its investment has been recovered fully from Molefe Mine’s future earnings.
Highlights
· Molefe Mine is placed on an accelerated development path with the formation of dedicated highly skilled teams to focus on:
o Day-to-day operational management of the Project currently ramping up production to achieve 4 500tpm of high-grade run-of-mine (ROM) (+2% copper (Cu) refined at Sable) and the on-site stockpiling of the low-grade ore (approximately 0.7% Cu) already reaching 2.2Mt on surface since the end of October 2025
o Completion of the design and implementation of the on-site processing facility to process the mined ore and stockpiled on-site lower grade ore
o Upscaling of the mine plan and resource definition through exploration drilling of Molefe Mine
· Jubilee retains control of the Molefe Mine (71.25% holding) ensuring it remains a core, strategic asset to Jubilee
· Jubilee’s existing investment into the Project is secured through a preferential earnings right from the Project until fully recovered
· Galileo to fund US$700 000 towards the exploration and development of the resource definition for the Project expected to confirm the early resource potential recognised by Jubilee
· The Agreement offers the potential for exploration and development to be expanded into further properties to replicate the success of the Molefe Mine
· Galileo has a highly experienced resource development team that includes veterans from major mining houses with specific experience in Zambia and Southern Africa, offering in-house developed intellectual property that will focus on the Project
· Molefe Mine has already been established as an operating mine with high-grade ore already being refined at Sable, providing a head start into the understanding of the underlying geology of the Project
· While this transaction initially covers only the Molefe Mine licence area, the greater Molefe area includes highly prospective contiguous exploration properties secured by Jubilee. These may be covered by further future agreements.
· This joint project approach, which brings together skills not readily available to an individual company, offers the potential to rapidly scale the operations into a large scale mine with an integrated processing facility, serving as an example for future similar projects which may be replicated across Zambia
Leon Coetzer, CEO of Jubilee Metals, commented:
“We are delighted to have found a partner with such an established track record in Zambia for the co-development of Molefe. The combined skill set of the two teams is seldom available to a single mining project of this size.
The joint agreement enables Jubilee to dedicate its focus on the day-to-day operations and the development of the processing solution for the Molefe Mine. Outsourcing the mine planning and resource measurement to Galileo, which has an exceptional team with decades of experience and a wealth of in-country and African knowledge, was a natural and pragmatic option.
The Jubilee operational team is looking forward to working with the Galileo operational team to accelerate the development of the Molefe Mine project.
The joint shareholding in Molefe Mine ensures a common purpose to develop this opportunity and offer shareholder returns – potentially one of the most significant, major copper deposits in the Central province of Zambia.”
Key Terms of the Agreement
Galileo holds the right to earn-in up to a 23.75% interest in the Molefe Mine holding company through the funding of a resource definition and exploration program for a minimum investment of US$700,000. Galileo must complete the agreed scope of work within eight months of the date of the Agreement to acquire the Sale Shares from Jubilee. Jubilee retains a 71.25% interest on completion of Galileo’s earn-in with the remaining 5% held by a local Zambian firm.
Executive committees will be formed to oversee the Project. For the joint executive committee Jubilee will nominate two members, one of whom will be the chairperson, and Galileo will nominate one member. The executive committee shall continue to operate until Galileo has fully acquired the Sale Shares. Upon the issue of the Sale Shares, Jubilee shall nominate two directors to the board of the Molefe Mine holding company and Galileo shall nominate one director.
Jubilee’s current investment into the Molefe Mine will be classed into an interest-bearing capital loan and non-interest-bearing shareholder loan. The capital loan will hold a preferential earnings allocation until fully settled before the distribution of any earnings in accordance with the terms of the Agreement.
Background on Molefe Mine
Molefe Mine to date was operating as a single pit with a mining rate of 80 000tpm. Of this, approximately 3 500tpm of high-grade ROM (of approximately 2% to 2.5% Cu) is delivered to Sable. A resource drilling program has commenced to upgrade resource confidence and optimise open-pit design. Molefe Mine consists of nine initial test open pits of which only Pit 5 was developed to mine and deliver the initial copper ore to Sable. Early indication from drilling results have positively delineated the presence of copper sulphide beneath the existing oxide material.
The Company is exploring the potential to merge the satellite pits into one large open-pit which will provide increased flexibility and productivity for supplying Sable. The Company temporarily halted mining at Molefe Mine for July and August 2025 while the extended pit design was completed. Ore delivery to Sable recommenced during September 2025 which is in addition to the current production from Roan.
Production commenced at 3 500tpm ramping up to 4 500tpm within 45 days and the Company is targeting to reach 8 500tpm by Q3 FY2026. At the targeted grade this equates to approximately 200tpm of copper units delivered to Sable in addition to the production from Roan.
An on-site processing plant is being planned at Molefe Mine. This plant will be designed for the low-grade ROM that incorporates a copper leaching, solid liquid separation, and copper precipitation circuit. To date approximately 2.2Mt of lower grade material has already been stockpiled at Molefe Mine in anticipation of the processing units.
About Galileo
Galileo Resources PLC (LON:GLR) is an opportunity driven company focused on building strategic partnerships in key locations across Southern Africa. Specialising in copper and critical battery metals crucial for the green energy transition, Galileo leverages advanced project acquisitions with unrealised potential and seeks to accelerate them towards production via innovative data-driven solutions.
Galileo’s board includes Colin Bird, a former chair of Jubilee, and Chris Molefe, a current non-executive director of Jubilee. Chris recused himself from the Jubilee board’s consideration of this agreement.
Galileo will be represented on the board and executive committees by members of its operational team with the appropriate expertise and experience to best support the development of the Molefe Mine project.
Disposal of chrome and PGM operations
Shareholders are advised that the last material suspensive condition to the sale of the Company’s chrome and PGM operations (Disposal) is linked to audit-related processes. Completion of the Disposal is expected to be by the end of CY2025.
The regulatory requirements for the accounting treatment of the Disposal in the Company’s year-end results, specifies the methodology for the presentation of the results which includes a comparison of the continuing business relative to the results from the Disposal. The Company anticipates that the accounts reflecting the Disposal will be concluded over the coming two weeks.
The Annual General Meeting is expected to be held during the latter half of December 2025. Further updates will be published as required.
