TIDMKZG
RNS Number : 2427K
Kazera Global PLC
20 December 2022
20 December 2022
Kazera Global plc
("Kazera" or the "Company")
100% disposal of African Tantalum (Proprietary) Limited
Kazera Global plc ("Kazera Global", "Kazera" or "the Company"),
the AIM quoted investment company, is delighted to announce that it
has signed a definitive agreement to sell its 100% interest in
African Tantalum (Proprietary) Limited ("Aftan") to Hebei Xinjian
Construction ("Xinjian") for cash consideration of
USD13,000,000.
Highlights
-- The agreement comprises the sale of all the shares and
associated loans in Aftan for cash consideration of USD13,000,000.
Kazera will retain the right to receive a debenture payment
equivalent to 2.5% of gross sales of produced Lithium &
Tantalum for the life of the mine.
-- Full operational control will pass to Xinjian on the
effective transaction date, with 100% ownership of the shares only
passing once Kazera has been paid in full for both the loan and the
share sale expected by [DATE].
-- This transaction represents the first successful realization
of returns on a strategic investment made by Kazera. The strategic
exit will allow Kazera to invest in its other projects, principally
the exciting Heavy Mineral Sands opportunity in South Africa,
without the need for additional capital raising.
-- Management attention will now be freed up to focus on further
strategic investment opportunities.
-- Heavy Mineral Sands operation now in production with 2022 targets already comfortably met.
This transaction supersedes the transaction announced on 20 July
2022.
Dennis Edmonds, Kazera Chief Executive Officer, commented:
"This is a hugely significant moment for Kazera, and I am very
pleased to announce this sale delivering USD13m in cash to the
Company. We have been working with Xinjian under the JV since July
and are confident in their ability to progress the asset through
its next development phase, whilst we retain exposure to its
growing cash flow profile through the debenture stream.
This represents a real milestone for Kazera as the first
realization of returns from an investment in line with our stated
strategy as an investing company of building value in our
investments whilst maintaining flexibility for opportunistic exit
points. This strategic exit will also enable management to focus on
our existing projects and further potential investments. We see
major opportunities in the present environment and look forward to
delivering sustainable growth to the benefit of all our
stakeholders in the near term.
I would also like to thank our team in South Africa for their
tremendous efforts in bringing Walviskop into production. The
entire team recognises the significance of this project, not just
to the Company, but also to the Richtersveld community, who have
been incredibly supportive of Kazera and the project."
Transaction overview
Kazera has entered into an agreement with Xinjian for Xinjian to
acquire all shares and claims in Aftan for an aggregate
consideration of USD13,000,000 comprised of purchase consideration
for the sale of the shares in Aftan of USD3,642,207 and the
repayment of the intercompany loan to Kazera of USD9,357,793.
Payment of the full sums is as follows:
USD642,207 has already been paid by Xinjian, with USD500,000 to
be received before the end of December 2022 and a further
USD2,500,000 to be paid by the end of January 2023. The balance of
USD9,357,793 will be payable in equal monthly instalments
commencing in April 2023 and terminating in December 2023.
Outstanding amounts will attract interest at a rate of 8% p.a.
Aftan is the holding company for Kazera's interest in the
Tantalum Valley Mine in Namibia. To the year ended 30 June 2022
Aftan reported a loss before tax of N$6,963,023.
When approached by Xinjian to consider the outright sale of
Aftan in place of the previously announced investment, the Board of
Kazera carefully considered the merits of an earlier than initially
anticipated exit from this investment. It is the belief of the
Board that this sale offers the opportunity to exit an investment
for an attractive return and, more importantly, enables Kazera to
invest in the Company's Diamond and Mineral Sands projects, the
latter which offers a tremendous cash flow profile and now without
the need to raise additional capital. It also positions the Company
to return value to shareholders, and the Board is examining options
to enable this in the future. In addition, the sale removes the
risks associated with the construction of a new processing plant
and recommissioning the mine in the current uncertain market
environment.
Update on Walviskop Heavy Mineral Sands project
In South Africa, the Company is pleased to announce that it has
comfortably exceeded its target of producing 1,000 tons of bulk
Heavy Mineral Sands at the Walviskop mine by the end of 2022, and
has already built up a stockpile of almost 5,000 tons. Offtake
discussions are well advanced with three different parties, all of
whom have expressed interest in buying the bulk product with a view
to entering into a contract in the future to purchase the product
in the form of refined minerals, which attract a premium price.
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
Dennis Edmonds (CEO)
finnCap (Nominated Adviser and Joint Tel: +44 (0)207 220 0500
Broker)
Christopher Raggett / Fergus Sullivan
(Corporate Finance)
Camarco (PR)
Elfie Kent / Hugo Liddy / Gordon Poole Tel: +44 (0)20 3781 8331
**ENDS**
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END
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(END) Dow Jones Newswires
December 20, 2022 02:00 ET (07:00 GMT)
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