TIDMKZG
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
o 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
o The previously disclosed investor remains interested in
providing a package of EUR9,130,000, which will fund the
development of the Tantalite Valley mine ("TVM") and the building
of the Orange River pipeline.
o 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.
o 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
o Tantalum assay results have attracted the interest of two
large end users and negotiations are now progressing for long term
supply.
o 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
o Diamond drilling continues, with meaningful cash flow now
being generated.
o 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) Tel: +44 (0)203 757 4980
Larry Johnson (CEO)
finnCap (Nominated Adviser and Joint Broker) Tel: +44 (0)207 220 0500
Christopher Raggett / Charlie Beeson (corporate
finance)
Camarco (PR)
Gordon Poole / James Crothers / Hugo Liddy Tel: +44 (0)20 3781 8331
**ENDS**
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END
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