Definitive US$10.5M Settlement Re: Aftan

Kazera Global

Today 07:00

RNS Number : 1733J
  
Kazera Global PLC
  
22 June 2026
  
 


The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain. 
 
 
22 June 2026
Kazera Global plc
("Kazera" or the "Company")
 
Kazera Executes Definitive US$10.5 Million Settlement in Respect of Aftan Arbitration Award
 
Structured settlement provides pathway to value recovery,

with initial US$500,000 payment process underway
 
Kazera Global plc (AIM: KZG), the AIM-quoted investment company, is pleased to announce that it has executed a definitive settlement agreement with Hebei Xinjian Construction CC ("Hebei") in relation to the previously announced arbitration award concerning African Tantalum (Pty) Ltd ("Aftan").
Under the agreement, Hebei is required to make an initial US$500,000 cash payment to Kazera, following which the settlement agreement will become effective in accordance with its terms. The payment is expected to be made from Namibia, and the parties are currently working through the associated banking and exchange-control mechanics required to enable the funds to be remitted to Kazera.
Under the agreement, Kazera will receive total consideration of US$10.5 million, payable over a structured period ending December 2029, with enhanced downside protections and an option for accelerated settlement. Hebei will also withdraw its review application in respect of the original arbitration proceedings.
Highlights
•     Definitive settlement agreement executed with Hebei for total consideration of US$10.5 million, payable through a structured instalment schedule ending December 2029
•     Kazera has previously received approximately US$4.1 million from Hebei under the original transaction which, together with the US$10.5 million settlement consideration, provides a contractual pathway to aggregate cash receipts of approximately US$14.6 million. This compares favourably with the original fixed cash consideration under the 2022 Aftan sale agreement of approximately US$13.0 million
•     Initial US$500,000 payment due to Kazera, with the parties currently progressing the Namibian banking and exchange-control mechanics required for remittance
•     Hebei may settle early at a discounted amount of US$9.0 million if paid in full by 31 December 2026
•     Settlement consideration structured as US$7.0 million loan repayment component and US$3.5 million share sale component
•     No ownership in Aftan transfers to Hebei until aggregate settlement payments of US$7.125 million have been received, thereafter transferring in four 25% tranches linked to payment milestones as follows:
•     Aggregate payment of US$7.125m for 25% holding in Aftan;
•     Aggregate payment of US$8.25m for 50% holding in Aftan;
•     Aggregate payment of US$9.375m for 75% holding in Aftan;
•     Aggregate payment of US$10.5m for 100% holding in Aftan
•     Kazera retains significant downside protection, including share pledges, acceleration provisions and automatic unwind rights in the event of two payment defaults (whether consecutive or otherwise)
•     Settlement provides a structured alternative to the arbitration award and recovery process which, whilst strongly supported legally, carried inherent uncertainty in timing, cost and practical enforcement
•     The Board currently intends, subject to legal, tax, working capital and regulatory considerations, to seek to return approximately 80% of net cash proceeds received under the settlement to shareholders. Further details, including the proposed mechanism and expected record date, which is currently anticipated to fall during July 2026, will be announced in the near term
•     Initial US$500,000 cash receipt, once received, is expected to materially reduce the Company's near-term external funding requirements, strengthen working capital flexibility and allow management to remain focused on the continued ramp-up of Whale Head Minerals, the REMI partnership and advancement of the 2A Mining Right
 
Richard Jennings, Interim CEO of Kazera, commented: "This is a significant and highly positive milestone for Kazera and its shareholders. We have executed a definitive settlement agreement in respect of the Aftan arbitration which provides a clear pathway to significant further value recovery.
"Whilst we remained highly confident in our legal position, the Board has always been focused on achieving the best practical commercial outcome for shareholders. We believe this agreement provides enhanced certainty, meaningful downside protection and an attractive commercial outcome when balanced against the uncertainty, timing and cost associated with alternative recovery routes. If completed in full, it will also result in aggregate cash receipts of approximately US$14.6 million, which compares favourably compared with original cash consideration of $13 million under the original 2022 sale agreement for Aftan.
"The initial US$500,000 payment is expected to be made from Namibia, and the parties are currently working through the associated banking and exchange-control mechanics required to remit the funds to Kazera. Once received, the initial cash payment is expected to meaningfully reduce the Company's near-term funding requirements, whilst the broader settlement provides a clear pathway to further cash recoveries.
"Importantly, this settlement is also consistent with the Board's broader strategy of transitioning Kazera towards a disciplined investment company model focused on value creation, monetisation and capital discipline.
"In line with this, we are committed to returning a significant proportion of the net cash proceeds received under the settlement to shareholders, whilst also ensuring the Company is appropriately funded to progress our flagship Whale Head Minerals asset, our partnership with REMI at Walviskop, the key 2A Mining Right and other value-accretive growth opportunities.
"This settlement, alongside the REMI processing agreement and the final push to secure the key 2A Mining Right, is further evidence that the new Board is delivering at pace, drawing a line under legacy issues and the failures of previous management, and focusing on accelerated monetisation of the Company's valuable assets. We now turn to completing and publishing the Competent Persons Report on 2A in the near term."
Background
As previously announced, Kazera entered into a share sale and loan repayment agreement with Hebei in December 2022 in respect of Aftan, Kazera's former tantalum and lithium mining business in Namibia.
Following material payment defaults by Hebei, Kazera commenced arbitration proceedings in Namibia. On 7 May 2025, Kazera announced that an arbitration award had been granted substantially in the Company's favour, awarding approximately US$11.9 million, plus continuing interest and costs.
Whilst the Board remained highly confident in Kazera's legal position, and the enforceability of the arbitration award, legal enforcement and recovery processes can be time consuming, costly and inherently uncertain in timing and practical outcome.
The Board therefore believes that securing a binding settlement agreement supported by an agreed initial cash payment mechanism and robust contractual protections, represents an attractive commercial outcome for shareholders.
Principal Settlement Terms
Under the terms of the settlement agreement:
•     Hebei is required to make an initial US$500,000 payment to Kazera, following which the settlement will become effective in accordance with its terms
•     The settlement agreement provides the initial US$500,000 payment to be received by Kazera BY Monday 6 July 2026 following the conclusion of associated banking and exchange-control mechanics in Namibia. Should payment not be received by that date, the settlement agreement will lapse automatically and Kazera will retain all rights under the arbitration award
•     Hebei will pay aggregate consideration of US$10.5 million through a structured payment schedule extending to December 2029
•     Hebei may elect to settle early through payment of US$9.0 million in aggregate if completed on or before 31 December 2026
•     Settlement payments are structured as approximately:
•     US$7.0 million attributable to repayment of Aftan shareholder loans; and
•     US$3.5 million attributable to consideration for the transfer of Aftan shares
•     No Aftan ownership transfers until Kazera has received aggregate payments of US$7.125 million, following which ownership will transfer to Hebei in four 25% tranches at aggregate payment milestones of US$7.125 million, US$8.25 million, US$9.375 million and US$10.5 million, respectively
•     Any transferred interests remain pledged back to Kazera as security until full discharge of the settlement
•     In the event of two payment defaults (whether consecutive or otherwise), the outstanding balance may become immediately due and payable, with Kazera retaining rights to enforce security and unwind the arrangement
The settlement follows extensive negotiations between the parties and reflects both the underlying value of the Aftan asset base and the practical benefits of securing structured recovery.
When combined with the approximately US$4.1 million previously received from Hebei pursuant to the original 2022 transaction, the settlement provides a contractual pathway for Kazera to realise aggregate value of approximately US$14.6 million. This compares favourably with original fixed cash consideration under the 2022 Aftan sale agreement of approximately US$13.0 million, whilst retaining significant downside protections throughout the payment period.
The Company also notes that independent corporate finance advice previously obtained by Kazera had indicated a potential fair value for Aftan of approximately US$15 million, although the Board recognises that any process to realise such value through a third-party sale would likely have required a formal transaction process and may not have been immediate, certain or achievable in full.
Intended Shareholder Returns
The Board recognises the patience and continued support of shareholders throughout the arbitration and recovery process, as well as during a period in which shareholders have borne the impact of repeated equity funding required to advance the Company's investments. The Board's focus is now firmly on asset monetisation, capital discipline and seeking to ensure that shareholders participate directly in the value recovered from the Company's portfolio.
Accordingly, the Board currently intends, subject to legal, tax, working capital and regulatory considerations, to seek to return a significant proportion, expected to be approximately 80%, of net cash proceeds received under the settlement to shareholders. Further details, including the proposed mechanism and expected record date, which is currently anticipated to fall during July 2026, will be announced in the near term.
ENDS
 
For further information, visit www.kazeraglobal.com or contact:
 




Kazera Global plc
Richard Jennings, Interim Chief Executive Officer


kazera@stbridespartners.co.uk




Strand Hanson Limited (Nominated, Financial Adviser and Broker)
Christopher Raggett / Ritchie Balmer


Tel: +44 (0)207 409 3494




Zeus Capital Limited (Joint Broker)
Harry Ansell / Simon Johnson / Katy Mitchell 


Tel: +44 (0)203 829 5000




St Brides Partners Limited (Financial PR)
Isabel de Salis / Charlotte Page


kazera@stbridespartners.co.uk




 
Notes
Kazera Global plc (LON:KZG) is a diversified commodity investment company focused on unlocking value through production growth and disciplined portfolio management. While production builds at its Whale Head Minerals (Heavy Mineral Sands) and Deep Blue Minerals (diamond) assets in South Africa's Northern Cape province, the Company also continues to assess new opportunities to expand its growth pipeline and deliver sustainable returns.
 




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