Jubilee selects preferred buyer for its Large Waste Project
London-listed integrated copper and resource developer Jubilee Metals Group has selected a preferred buyer for its Large Waste Project (LWP), in Zambia, for $35-million.
Jubilee earlier this month confirmed that it had received two binding offers for the LWP, which Jubilee intends to sell to support accelerated investment into the growth of its existing Zambian operations.
The copper producer points out that the LWP is a large-scale, greenfield development project, which would have required significant standalone capital investment.
The preferred buyer will undertake the proposed acquisition through a two-stage due diligence process, with the first to focus on confirming the contractual and regulatory legal framework governing the LWP. This is expected to be completed within about ten days.
Subject to satisfactory completion of this first stage, the preferred buyer will make a payment of $2.25-million to secure a further 45-day period of exclusivity during which it will complete its remaining due diligence.
Following satisfactory completion of the due diligence process and execution of the definitive transaction documentation, the balance of the $35-million acquisition consideration will be settled over an agreed three-year instalment period.
The transaction terms also provide the buyer with the option to accelerate settlement of the outstanding consideration to within two years, in return for an agreed reduction in the total consideration payable to $30-million.