# Jubilee Metals Group completes the acquisition of the Sable Zinc Refinery in Kabwe - Link: https://www.directorstalkinterviews.com/jubilee-metals-group-completes-the-acquisition-of-the-sable-zinc-refinery-in-kabwe/412791124 - Published: 2019-08-23T10:26:25+01:00 - Author: Amilia Stone **[Jubilee Metals Group](https://www.directorstalkinterviews.com/company/jubilee-metals-group-plc/jlp.l) P**LC ([LON:JLP](https://www.directorstalkinterviews.com/company/jubilee-metals-group-plc/jlp.l)), the AIM and Altx traded metals processing company, has today announced that the sale and transfer of the entire issued share capital in Sable Zinc Kabwe Limited to Jubilee has been completed, allowing Jubilee to commence with the implementation of a fully integrated multi-metal refinery in Zambia. **Highlights** ·    The acquisition of Sable Zinc Refinery has been completed representing a major step for the advancement of the Kabwe Project ·    The acquisition significantly reduces the Kabwe Project implementation time lines and project capital requirement ·    The Refinery together with Jubilee’s Kabwe surface resources in excess of 6 million tonnes at surface, establishes a fully integrated multi-metal operational footprint in Zambia ·    Jubilee intends to recommission the current copper/cobalt circuit during Q4 2019 to achieve earnings during the build phase of the zinc vanadium and lead circuit with first production of zinc and vanadium targeted for Q2 2020 ·    The acquisition expands Jubilee’s commodity basket to include copper, vanadium, zinc and lead ·    This multi metal refining operation affords Jubilee the opportunity to rapidly expand its metals recovery footprint in Zambia which the Company is actively pursuing > **_Jubilee Chief Executive Officer Leon Coetzer said:_**_ _ > _“Completing the acquisition of the Refinery is a key milestone in delivering > Jubilee’s Zambian strategy of establishing a fully integrated multi-metal recovery > operation.  The Refinery, which will be the only one of its kind in Zambia, opens > tremendous potential opportunities for Jubilee to significantly increase its access > to additional surface materials for further refining._ > _“The advancement of the Kabwe Project is in line with our group strategy to diversify > earnings across multiple commodities and jurisdictions.  We are able to fund the > acquisition and implementation of the Kabwe project from our current cash reserves.”_ **Acquisition of Sable Zinc Refinery** Jubilee and [Glencore plc](https://www.directorstalkinterviews.com/ftse-company/glencore-plc/glen.l) through two of its subsidiaries (“Glencore”) entered into a Sale and Purchase Agreement(“ SPA”) for the acquisition by Jubilee of the entire issued share capital in Sable Zinc. Sable Zinc owns the Sable Zinc Refinery (the “Refinery”) adjacent to Jubilee’s Kabwe Project.  The transfer of ownership of Sable Zinc from Glencore to Jubilee has been finalised after satisfaction of the conditions in the SPA, including receiving consent to the transfer from the Zambian Mining Cadastre Department. Under the terms of the SPA, Jubilee has approved and made the first payment tranche of US$6,000,000 to Glencore.  The second payment of US$3,000,000 will fall due on the earlier of the completion of the conversion of the Plant to a zinc processing plant or six months after Closing. The third payment of US$3,000,000 will fall due on the earlier of commencement of commercial production of any saleable product at the Plant or six months after the second payment. **The Kabwe Project** The Kabwe Project seeks to establish a fully integrated metal recovery and refining operational footprint in Zambia. The Project combines access to large surface material with the adjacent multi-metal refining capability. The Kabwe Project resource comprises an estimated 6.4 million tonnes (3.2 million JORC compliant) of surface assets containing 356,843 tonnes of zinc, 351,386 tonnes of lead and 1.26% equivalent vanadium pentoxide. This excludes further third party sourced copper and zinc rich mined material for further refining.  The adjacent Refinery will be expanded to include a copper, zinc, vanadium and lead refining circuit based on Jubilee’s extensive process development and optimisation works program.  The Kabwe Project will be implemented over three phases as outlined below.  Jubilee is fully funded to deliver this development plan. **Phase 1:** Upgrade and commissioning of the copper refining circuit with a targeted capacity of 3,000 tonnes of refined copper per annum, targeting implementation during Q4 2019. **Phase 2:** Implementation of both the zinc and vanadium refinery circuit with an initial targeted capacity of 8,000 tonnes per annum of zinc contained in a high grade zinc concentrate suitable for the market and 1,500 tonnes per annum of vanadium pentoxide, targeting commissioning of the zinc and vanadium refinery circuit during Q2 2020. **Phase 3:**  Implementation of the lead refining circuit with an initial targeted capacity of 11,000 tonnes per annum of lead contained in a high-grade concentrate during Q2 2021. The Kabwe Refinery process flowsheet offers flexibility with two separated fully equipped electro-winning circuits able to produce either high grade copper or zinc with only minor adjustments. The Company can allocate this refining capacity either to both metals individually or a combination of the two metals depending on the prevailing market conditions to maximise returns. Prior to taking ownership of the Refinery, Jubilee actively pursued the completion of the project design and initiating final equipment selection to enable rapid implementation of the process flowsheet.  Please refer to Jubilee’s website which is being updated to show the project progress.  **Appointment of joint broker** Jubilee has appointed WHIreland as joint broker together with Shard, in support of Jubilee’s focus to broaden its institutional shareholder base. Share on: