Diamond Production Commenced at Deep Blue Minerals

RNS Number : 4336B

Kazera Global PLC

08 October 2020

 

08 October 2020

Kazera Global plc

Diamond Production Commenced at Deep Blue Minerals

Kazera Global plc ("Kazera Global", "Kazera" or "the Company"), the AIM quoted investment company, is pleased to provide the market with an update on progress on its diamond mining operations within its subsidiary, Deep Blue Minerals ("DBM"), where diamond production is underway.

Highlights:

·   Initial operations have been focussed on areas identified by management as likely to be high in diamond content;

· Since beginning operations approximately 33,000 tons of overburden at Cliffs East Mining Site have been removed from the inland diamond deposits at Blocks CL284, CL286 and CL288, exposing around 3, 800 tons of diamond bearing gravel;

· The gravel has been removed and is currently undergoing in field screening to ensure that only gravel containing diamonds is transported for final diamond recovery;

· Initial evaluations are that diamond content will comfortably exceed the average predicted grade of 6 carats per 100 cubic metres;

· The first auction in which the Company is expected to participate will be at the beginning of the fourth quarter with anecdotal evidence indicating that diamond prices are holding up well despite the Covid 19 epidemic.

Additional progress has also been made as follows:

· Site offices, including a supply store and rest room have now been built and site establishment works to comply with government regulations have been completed

· DBM has acquired its own contract for the mining of land-based diamonds, which means that it is no longer mining these under a sub contract.

DBM has met its legal obligations by concluding negotiations with carefully chosen Black Economic Empowerment partners ("BEP"), bringing community, political and commercial contacts to the project and valuing the DBM operation in excess of £6.6million.  The valuation is based upon the value ascribed to DBM in the Feasibility Study by Dr Johan Hattingh, who compiled the Competent Person's Report.    The Company has provided a loan of R36,735,183.20 (GBP 1,709,130.25) to the BEP in order for the BEP to acquire a 26% share in DBM. The loan bears interest at 3.5% above the UK Base Rate and will be repayable from fees and dividends.

Dennis Edmonds, Kazera Executive Director managing the Alexander Bay projects, commented:

"I am very proud of the way in which everyone has pulled together in these very trying times. It is a real testament to the quality of the team to have got into the full swing of production at the same time as getting the site fully established and achieving all other milestones whilst remaining comfortably within budget. We are excited by what the auction process will deliver."

For further information on the Company, visit:  www. kazeraglobal .com

Kazera Global plc (c/o Camarco) Larry Johnson (CEO)	Tel: [phone]
finnCap (Nominated Adviser and Joint Broker) Christopher Raggett / Charlie Beeson (corporate finance)	Tel: [phone]
Camarco (PR) Gordon Poole / James Crothers / Hugo Liddy	Tel: [phone]

**ENDS**

 

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