Molefe Copper Mine in Zambia Set for Expansion Through Jubilee-Galileo Partnership
Jubilee Metals and Galileo Resources Form Strategic Alliance to Accelerate Molefe Copper Mine Development in Zambia
Johannesburg- and London-listed Jubilee Metals Group has signed a cooperation and project development agreement with Galileo Resources to fast-track exploration and development at the Molefe copper mine in Zambia. Under the deal, Galileo can earn up to a 23.75% interest in the project by investing $700,000 in resource development work.
The agreement leverages Jubilee’s operational and processing expertise in Zambia alongside Galileo’s exploration and geological capabilities, allowing each company to focus on core workstreams, including:
Day-to-day operational management
Design and construction of an on-site processing plant
Expanded drilling and exploration at Molefe and surrounding areas
Earn-In Terms and Ownership Structure
Galileo will earn its 23.75% shareholding in the Molefe mine’s holding company by completing the agreed exploration and resource definition program within eight months. Upon completion:
Jubilee will retain a 71.25% interest
A local Zambian company will hold 5%
Jubilee’s existing investment in the mine will be structured as a combination of an interest-bearing capital loan and a non-interest-bearing shareholder loan, with preferential earnings applied to the capital loan until fully repaid.
Current Operations and Expansion Plans
Molefe is currently operational and supplying high-grade ore to Jubilee’s Sable refinery, with production increasing to 4,500 tonnes per month of run-of-mine ore at over 2% copper. Approximately 2.2 million tonnes of lower-grade ore (0.7% copper) have been stockpiled on site since October.
The planned on-site processing facility will treat both new ore and stockpiled material. The expanded exploration and drilling program aims to grow the resource base for mine planning and confirm the potential identified by Jubilee.
Governance and Joint Committees
The agreement establishes executive committees to oversee the project:
Jubilee will nominate two members, including the chairperson
Galileo will nominate one member
After the earn-in, board representation will follow the shareholding structure, with Jubilee appointing two directors and Galileo one director.
Potential for Expansion
The partnership may extend to additional contiguous exploration areas secured by Jubilee around Molefe. These areas are considered highly prospective and could allow the companies to replicate the development model used at Molefe.
CEO Commentary
“We are delighted to have a partner with such an established record in Zambia for the co-development of Molefe. The combined skill set of both teams is seldom available for a single mining project of this size,” said Jubilee CEO Leon Coetzer.
Coetzer emphasized that the agreement allows Jubilee to focus on operations and processing development, while Galileo manages mine planning and resource measurement, leveraging its decades of experience in Zambia and across Africa.
“The joint shareholding ensures a common purpose to develop this opportunity and deliver shareholder returns – potentially one of the most significant copper deposits in Zambia’s Central Province,” he added.
This collaboration positions the Molefe mine as a rapidly advancing project with strong potential to contribute significantly to Zambia’s copper production and mining sector growth.
