Acquisition of additional interest in TVM

RNS Number : 1529R

Kazera Global PLC

26 June 2020

 

26 June 2020

Kazera Global plc

Acquisition of additional interest in Tantalite Valley Mine

Appointment of Executive Technical Director

Kazera Global plc ("Kazera Global", "Kazera" or "the Company"), the AIM quoted investment company, is pleased to announce that it has increased its interest in African Tantalum (Pty) Limited ("Aftan"), who own the Tantalite Valley Mine ("TVM" or the "Mine") and the Tameka Shelf Company, to 100%, having acquired a further 25% interest.

Furthermore, the Company is pleased to announce the appointment of Mr Odilon Ilunga as an Executive Technical Director to the Board of the Company.

Highlights :

· Kazera to acquire remaining 25% interest in Aftan from Warmbad Investment Holdings (Pty) Ltd (the "Vendor")

· Acquisition cost of £26,008 funded via low-cost issuance of 4,523,114 ordinary shares in the capital of the Company ("Ordinary Shares") to the Vendor at a price of 0.575 pence per Ordinary Share

o  The acquisition of the further 25% interest has been completed for the same number of shares relative to the 75% interest previously acquired by the Company, despite significant resource upgrades and progress being made to the Mine during this period and the share price being considerably lower than at the time of the original acquisition.

· Completes the Company's long-term planned strategy of acquiring total control over TVM ahead of a significant period for the Mine where the Orange River Pipeline building project matures

· As a reminder to shareholders, cumulatively, Aftan de-risked JORC Compliant Mineral Resource Estimates of 622.2 kt of lithium and tantalite resources in it's first exploration phase at the Mine since Kazera first invested, with the second phase ongoing

· Additional expertise added to the Board with the appointment of Mr Illunga, a metallurgist with significant experience.

Having achieved significant progress across the Mine to date, Kazera has acquired a further 25% interest in Aftan to further increase and develop the Company's exposure to the tantalum and lithium opportunity which the Mine present; as well as taking a more controlling position in the future of the Mine.

Focus at the Mine remains on completing the second exploration drill phase to further delineate the extent of Resources in the licence area. So far, the Company has completed drilling at the Homestead, Purple Haze and Snake deposits with further drilling to take place at Signaalberg and White City. Initial results are positive and the Company anticipated completing the core drilling by the end of H1 2020.

As previously announced, COVID-19 has had minimal impact on operations at the Mine, however has impeded the sending of recovered cores to ALS for assaying. 

With the Company now having a 100% interest in Aftan, focus has shifted to the next phase of the Mine, which will include the maturing of operations for creation of a pipeline between the Mine and the Orange River which will deliver water for more efficient tantalum production from the Mine.

Terms of the Acquisition

As per the agreed terms of the acquisition, Kazera will issue 4,523,114 Ordinary Shares (the "Consideration Shares") to the Vendor at a price of 0.575 pence per Ordinary Share, this being the closing price of the Company's shares on 24 June 2020.

Appointment of Executive Director

Ahead of an intense operational period, the Company is pleased to announce the appointment of Odilon Ilunga as an Executive Technical Director of the Company.

Mr Ilunga, having been instrumental in the Company's first phase of exploration at TVM, is a Metallurgist and Civil Engineer having graduated with a master's degree in metallurgical engineering from the University of Witwatersrand. Having begun his career in mining at Ongolopo Mining Limited in 2004 before moving to Weatherly Mining Namibia in 2010, Mr Ilunga was appointed Operations Manager at African Tantalum in 2017, in charge of tantalum ore concentration and development strategies for the processing plant.

Further to this, Mr Ilunga is in charge of Mineral Processing at the Department of Mining and Metallurgical Engineering, University of Namibia.

Admission

Application has been made to the London Stock Exchange to admit the Consideration Shares to trading on AIM, Admission of the New Ordinary Shares is expected to occur on 2^nd July  2020 ("Admission"). The New Ordinary Shares will rank pari passu with the existing Ordinary Shares.

Following Admission, the issued share capital of the Company will be 679,950,986 Ordinary Shares  and this figure may be used by shareholders as a denominator for the calculations by which the will determine if they are required to notify their interest in, or change to their interest in the Company under the Disclosure Guidance and Transparency Rules published by the UK Financial Conduct Authority. There are no Ordinary Shares held in treasury and each Ordinary Share entitled the holder to a single vote at general meetings of the Company. Therefore, the total number of voting rights in the Company will be 679,950,986.

Larry Johnson, Chief Executive Officer of Kazera Global commented:

"We are delighted to further increase our exposure to the high-value TVM Mine at such favourable terms. Being now based at the Mine, I continue to see the value being unearthed as part of our exploration programmes and look forward to moving the Mine onto its next phase of growth.

"As we finalise the program and mature our Orange River Pipeline construction planning we look forward to updating shareholders on further progress."

Giles Clarke, Chairman of Kazera Global commented:

"Mr Ilunga has been a valuable adviser to Kazera for some time now and we are delighted to welcome him to the Board as we move into an operational period. Mr Ilunga's experience as a metallurgist with significant experience across the mining sector will add further depth to our specialised and diverse Board as we look to deliver for our shareholders."

Information required under Schedule 2, paragraph (g) of the AIM Rules for Companies

The following information regarding Mr. Odilon Ilunga is disclosed pursuant to Schedule 2, paragraph (g) of the AIM Rules for Companies:

Full name	Odilon Kasongo Ilunga
Age	51
Current Directorships	None
Previous Directorships (in the past five years)	None

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

**ENDS**

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

 

END

 

 

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