Jubilee Metals Group Plc (LON:JLP), a diversified metals producer with operations in South Africa and Zambia, has announced that it has today, issued an important circular regarding the proposed disposal of its Chrome and PGM Operations in South Africa for a purchase consideration of up to US$90 million to One Chrome (Pty) Ltd. The Transaction constitutes a fundamental change of business for the Company in accordance with AIM Rule 15 which requires that the Transaction be approved by Shareholders.
The Company also gives notice of a general meeting of shareholders to be held at 25 Ecclestone Place (The Auditorium), London, England, SW1W 9NF on 28 August 2025 at 11:00 a.m. (UK time), 12:00 noon (SA time), where the resolution to approve the Transaction will be proposed. The resolution will be proposed as an ordinary resolution. Shareholders should read the notice of general meeting at the end of the circular for the full text of the resolution and for further details about the general meeting.
The Directors consider that the resolution to be proposed is in the best interests of shareholders and the Company as a whole and unanimously recommends that shareholders vote in favour of the resolution, as they intend to do in respect of their own beneficial shareholdings.
Highlights
| · The Board is confident that the Transaction represents a compelling opportunity for the Company to realise value from its Chrome and PGM Operations. |
| · Strategically repositions Jubilee within the copper sector with significantly greater investor recognition and valuation multiples as compared with chrome and PGMs. |
| · Sale proceeds would substantially exceed Jubilee’s short-term capital requirements for its copper business. |
| · Zambia presents a highly attractive platform for growth underpinned by strong copper market dynamics, expanding resource potential and meaningful economic upside. |
| · Transaction is non-dilutive and creates the opportunity to implement a sustainable share buyback programme and/or implement a dividend policy in future. |
| · Transaction has an enterprise value of approximately US$146 million, which represents a 6.0x multiple on the FY2024 EBITDA of the assets being sold. |
| · Letters of support received from institutional shareholders representing, in aggregate, approximately 30.42% of the issued share capital of the Company, to vote in favour of the resolution |
