Jubilee Metals Group (LON:JLP) today announced a clarification note on the position of BMR Group PLC regarding its involvement in the Kabwe Project after the cancellation of admission to trading on AIM.
· Kabwe Project remains on track
· Jubilee to provide funding to continue construction of the Zinc Recovery circuit
· Kabwe Project implementation unaffected by BMR’s delisting
· Jubilee holds the right to fund the Kabwe Project through a dilution of BMR’s interest in the project
Leon Coetzer, Jubilee Metals Group Chief Executive Officer, says: “The cancellation of admission to trading on AIM of BMR Group PLC does not impact the execution of the Kabwe Project. Jubilee is already appointed as the project manager and sole operator of the project, tasked with implementing the Kabwe Project.
The provisions contained in the executed shareholders’ agreement of Kabwe Operations, the company appointed with the sole right to execute and fund the Kabwe Project, affords Jubilee the right to continue funding the project to completion. Such funding shall account towards the dilution of BMR’s interest in the Kabwe Project.
The existing agreements also ensure that the success of the project remains independent of the financial position of BMR.
BMR and Jubilee have entered into discussions under which Jubilee has offered to fully fund the completion of the Kabwe Project against an immediate fixed dilution of BMR’s interest in the project. I look forward to continuing these discussions with BMR.
As previously discussed, the enhanced flowsheet allows us to implement the zinc recovery circuit independently of the lead recovery circuit. I am confident that the team will conclude the enhanced circuit design and project financial parameters by the end of Q3 2018.”