Operational Update

RNS Number : 6415A
Kazera Global PLC
03 June 2021
 

3 June 2021

Kazera Global plc

 Operational Update

Kazera Global plc ("Kazera Global", "Kazera" or "the Company"), the AIM quoted investment company, is pleased to provide an operational update across its portfolio ahead of its planned Annual General Meeting held later today.

 

Highlights:

 

· Appointment of Joint Chief Executive

Dennis Edmonds, the Director responsible for the Company's Alexander Bay activities, has been appointed as Joint Chief Executive effective from 3 June 2021, given the importance of the South African activities and the considerable constraints on travel caused by Covid.

· Focus on securing a long-term financing solution for the Company remains ongoing, with two opportunities continuing to be progressed, only one of which will be completed on the terms below

The previously disclosed investor remains interested in providing a package of €9,130,000, which will fund the development of the Tantalite Valley mine ("TVM") and the building of the Orange River pipeline.

A new opportunity with a second Namibian investor who, following completion of due diligence by both parties, has signed agreed initial terms to subscribe $11 million for 290,576,383 shares in the Company.

Either transaction would give a price of approximately 2.7 pence per share and give the investor 29.34% per cent. of the outstanding equity in the Company at the time of issuance.

 

· Operational activity continues across the portfolio, with new end-users signalling interest in off-take from TVM

Tantalum assay results have attracted the interest of two large end users and negotiations are now progressing for long term supply.

DJ Drilling has completed operations focused on repairing the road networks across the Mine, resulting in the road systems now being back to full operational capability, ready to support the restarting of operations.

 

· Production at the Company's Diamond Mine continues, with progress on permitting for the Heavy Mineral Sands operations with the Government being made

Diamond drilling continues, with meaningful cash flow now being generated.

South African government has requested that the Company begin distributing notices of its Mining Permit application to locals.

 

 

Investment Update

 

In line with the Company's continued focus on securing a long-term financing solution for the Company's operations, particularly at TVM, the Company is pleased to announce that, in addition to the previously disclosed investor with whom discussions remain ongoing, it has now secured interest from a second potential investor. The second investor, a reputable local Namibian investor on whom the Company has undertaken outside due diligence, has agreed terms to subscribe $11million for 290,576,383 shares in the Company.

 

The Company will conclude a transaction with the first of these investors who is able to deliver the funds. The investment will mean that the development of the Tantalum Valley mine is completely funded, including the construction of the Orange River pipeline. It will also accelerate development of the Diamond and Heavy Mineral Sands opportunities.

 

 

Tantalite Valley Mine:

 

At TVM, the Company discussions are well advanced with two potential end users of Tantalum who have been impressed by the assay results. The intention is to conclude a long-term supply contract with at least one of these end users.

 

Operationally DJ Drilling, the Mine's operator, has been focused on repairing the road systems around the Mine following a period of severe weather. These operations have now been completed. DJ Drilling will now begin moving earth for the government approved Tailings Dam, that will recover approximately 20% more water from the plant waste materials.

 

In addition, the Company has completed negotiations with a Namibian business to supply a 40,000 litre diesel tanker on site that will operate using a monthly consignment model, invoicing only what is used.

 

Diamond Production

At the Company's South African Diamond Mine, production remains ongoing, with several batches being sent to auction since the acquisition of Deep Blue Minerals. With production increasing and focussing on larger carats, the Company believes that the Company's Diamond Mine will shortly be cash flow positive for the Mine and the Group as a whole. 

 

Negotiations with the government in regards to the Company's Heavy Mineral Sands interests are progressing well, with the Government now requesting that the Company take the next step of posting Notices which advise the local community of its Mining Permit application. These Notices have now been distributed with initial feedback from the local community being very positive. The Company expects that the application for a Prospecting Licence will soon follow the same path.

 

Larry Johnson, Kazera Joint Chief Executive Officer, commented: 

 

"Our focus remains on finding a financial solution for the creation of the Orange River pipeline, which, once completed, will support the restarting of production from our Tantalite Mine. Whilst we await completion of one of these financing solutions, DJ Drilling and Kazera have turned our attention to making sure that the Mine is ready to restart operations and that our road networks and equipment currently on site are ready."

 

Dennis Edmonds, Kazera Joint Chief Executive Officer, commented:

 

"Recent progress in South Africa will shortly see our Diamond Mine becoming cash flow positive. The progress made for our Mining Permit is also very exciting. Both of these opportunities add significantly to the value of our Company and from which we can look to deliver growth to shareholders."

 

Mr Johnson and Mr Edmonds further commented:

 

"Despite the global pandemic, Kazera Global has made considerable progress during 2020 and 2021 across our assets, which continue to draw the interest of several investors and end-users."

 

"As we look ahead, we hope that 2021 will see the completion of multiple work streams across Kazera Global and that we can hold our next AGM in person." 

 

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No. 596/2014 ('MAR').

 

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

 

Kazera Global plc (c/o Camarco)

Larry Johnson (CEO)

Tel: +44 (0)203 757 4980

 

finnCap (Nominated Adviser and Joint Broker)

Christopher Raggett / Charlie Beeson (corporate finance)

 

Tel: +44 (0)207 220 0500

 

Camarco (PR)

Gordon Poole / James Crothers / Hugo Liddy

 

 

    Tel: +44 (0)20 3781 8331

 

**ENDS**

 

 

 

 

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