Move To Arbitration On Aftan Sale Agreement

Kazera Global PLC

24 September 2024

 

This announcement contains inside information for the purposes of Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

24 September 2024

Kazera Global plc

('Kazera' or 'the Company)

Move To Arbitration On Aftan Sale Agreement

Kazera Global plc, the AIM-quoted investment company, announces that, following its RNS on 4 September 2024, it has not received payment of the circa US$9.5 million owed by Hebei Xinjian Construction ("Xinjian") by the final deadline of 23 September 2024.

As a result, Kazera is now exercising its right to refer the dispute to arbitration, in accordance with provisions in the Sale Agreement governing the sale of its 100% interest in African Tantalum (Pty) Limited ("Aftan") to Xinjian, as previously announced in an RNS on 20 December 2022 (the "Sale Agreement").

The Company has instructed its attorneys to commence arbitration proceedings with immediate effect. Arbitration will take place in Windhoek, Namibia, with an expedited timescale for conclusion of 60 business days from the initiation of arbitration proceedings.

Kazera remains fully confident in its legal position regarding the outstanding debt and looks forward to providing further updates to the market in due course.

The Company can further confirm that alongside the mining of tantalum, Aftan has received approval in recent weeks to mine lithium. Accordingly, the Board of Kazera believes that the value placed on Aftan has increased.

Dennis Edmonds, Chief Executive Officer of Kazera Global Plc commented: "While it is disappointing that Xinjian has failed to meet its payment obligations, we remain entirely confident in our legal position and are now moving forward at pace with the arbitration process. We remain steadfast in our commitment to protect the interests of all our shareholders by pursuing the outstanding debt vigorously and we are confident of a positive outcome."

ENDS

For further information visit www.kazeraglobal.com or contact: 

Kazera Global plc  Dennis Edmonds, CEO	[e-mail]
Cavendish Capital Markets Ltd (Nominated Adviser and Broker) Derrick Lee / Pearl Kellie (Corporate Finance)	Tel: [phone]
St Brides Partners (Financial PR) Paul Dulieu / Isabel de Salis	[e-mail]

About Kazera Global plc

Kazera is a global investment company focused on leveraging the skills and expertise of its Board of Directors to develop early-stage mineral exploration and development assets towards meaningful cashflow and production. Its three principal investments are as follows:

Alluvial diamond mining through Deep Blue Minerals (Pty) Ltd, Alexander Bay, South Africa

Kazera currently has a 100% direct interest in Deep Blue Minerals, of which 74% is held beneficially by Kazera and 26% is held on behalf of Black Economic Empowerment partners.

Heavy Mineral Sands mining (including ilmenite, monazite, rutile, and zircon) through Whale Head Minerals (Pty) Ltd, Alexander Bay, South Africa.

Kazera currently has a 70% direct beneficial interest in Whale Head Minerals together with the benefit of a loan facility entitling it to receive approximately £38m out of dividends from the other shareholders.

Tantalite mining in South-East Namibia (divestment in progress)

As announced on 20 December 2022, Kazera has agreed to dispose of African Tantalum (Pty) Ltd ("Aftan") for a cash consideration of US$13 million plus a debenture payment of 2.5% of the gross sales of produced lithium and tantalum for life-of-mine. Completion of the sale is subject to receipt of full consideration proceeds. Aftan has been deconsolidated from the Company's financial statements with effect from 4 January 2023 because in accordance with the terms of the sale agreement, it has relinquished control of the Aftan in favour of the purchaser, Hebei Xinjian Construction Close Corp ("Hebei Xinjian") with effect from that date. Kazera retains the right to cancel the transaction and retain all amounts paid to date in the event of default by Hebei Xinjian.

The Company will consider additional investment opportunities as appropriate, having regard to the Group's future cash flow requirements.

Forward Looking Statement

This press release contains certain "forward-looking information". All statements, other than statements of historical fact that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future are deemed forward-looking information.

This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company as well as certain assumptions. Forward-looking information is subject to a number of significant risks and uncertainties and other factors that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realised or substantially realised, there can be no assurance that they will have the expected consequences to, or effects on the Company.

Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.

 

END