Accelerating Tantalum Valley Operations

RNS Number : 2984K

Kazera Global PLC

01 September 2021

 

Kazera Global plc

 Accelerating Tantalum Valley Operations

Kazera Global plc, the AIM quoted investment company, is pleased to report that the Board have now concluded a plan with DJ Drilling, which they believe will lead to the profitable production of Tantalum from its mine in Namibia before the end of 2021.

Highlights

· Fixed price contract agreed with DJ Drilling for onsite construction works

· DJ Drilling to take over day to day operation of mining activities on a contract basis

· $11m investment still on track with both Namibian investors

Since moving onto site in June 2021, DJ Drilling have upgraded roads and general infrastructure as well as conducting plant maintenance. In line with their continued commitment to the Mine, DJ Drilling have agreed with the Company a fixed price contract, which will see the Mine be moved back into operation and producing Tantalum with a target by the year end. DJ Drilling will then be predominantly paid out of profits generated by the sale of Tantalum.

Investment update

During the last few months, the Company has been constantly updated by both prospective investors, both of whom remain confident that they will be able to make their investments shortly at the original investment level (circa 2.7 pence per share). Both are awaiting the conclusion of other transactions and neither is able to control the speed at which these bigger transactions come to conclusion.

Both investors recognise the material value of the Tantalum Valley Mine to Namibia and the immediate environ, and both remain focused on completing their side of the existing agreements with the Company. Once these funds are received they will substantially accelerate the development of the Mine and further exploration into both the Tantalum and Lithium deposits on site along with a Phase lll Drilling Program to add further to our world class resource.

Larry Johnson, Kazera Joint Chief Executive Officer, commented: 

"DJ Drilling committing to undertake the work to get the mine into operation as well as their bringing in the necessary equipment has unlocked the current impasse and is a true reflection of their commitment to the project and their belief in its potential. We look forward to a long and fruitful future together.

"Whilst we remain focused on the accelerated opportunities that an investment of $11million would create, we are conscious that the process has taken longer than anyone had originally contemplated as a result of outside factors. Rather than continue to wait, the Board have elected to move forward, albeit on a smaller scale, with a view to accelerating operations at the Mine once the investments come through and in a manner that is non-dilutive to existing shareholders."

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/Dennis Edmonds (Joint CEO's)	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**

 

END

 

 

MSCBIGDIGGXDGBB