Metals recovery business Jubilee Metals has closed a private placement, raising around £13m ($16.6m) to support the recent copper waste rock dump project in Zambia.

The company issued 236.3 million new shares in the placement, each priced at 5.5 pence. WH Ireland and Berenberg were joint brokers and joint bookrunners for the placement.

The announcement follows the recent partnership between Jubilee Metals and United Arab Emirates (UAE)-based International Resources Holding (IRH) for copper extraction, with a monthly production goal of 2,000 tonnes.

Early estimates indicate that the waste rock deposit could hold up to 350 million tonnes of material with copper grades higher than 1.5%.

Proceeds from the latest placement will be used for making the initial payment of $1.75m related to the waste rock project.

Jubilee Metals will also use the funds to expand sulphide recovery circuits at its Sable refinery for increased sulphide concentrate production from newly acquired projects.

The funding will also be used for progressing the development phase of the Mufulira slag project with early-stage bulk trial and processing, as well as for general working capital requirements.

Jubilee Metals CEO Leon Coetzer said: “The money raised will allow us to accelerate the manufacturing of our new copper modules on these new projects and, importantly, secure the long-lead items with suppliers in what is a tight market for key materials. The funds will also allow us to expand our plant at Sable by increasing the copper sulphide capacity to meet the increase in volumes.

“This proposed fundraise is in addition to our existing funded growth projects in South Africa and Zambia. By fast-tracking this new waste rock project, we will be able to bring forward production and revenues quicker than funding from existing cash flow.”