First Sale of 10,000 Tonnes of Heavy Mineral Sands

Kazera Global

01/04/2025 07:00

RNS Number : 0208D

Kazera Global PLC

01 April 2025

 

This announcement contains inside information for the purposes of Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

 

1 April 2025

Kazera Global plc

("Kazera", "the Group" or "the Company")

 

First Sale of 10,000 Tonnes of Heavy Mineral Sands

 

Kazera Global plc (AIM: KZG), the AIM-quoted investment company, is delighted to announce that its subsidiary, Whale Head Minerals (Pty) Ltd ("WHM"), has issued its first invoice for the sale of 10,000 metric tonnes of heavy mineral sands ("HMS") to Fujax South Africa (Pty) Ltd ("Fujax") under its sales and offtake agreement (the "Agreement") (see RNS dated 12 December 2024).

 

This initial sale of 10,000  tonnes surpasses the originally expected initial sale of 6,000 tonnes. The commencement of HMS sales marks a significant milestone for both WHM and the Group. It also highlights the growing strength of WHM's operations and its increasing contribution to Kazera's overall success.

 

HIGHLIGHTS

·   Sale of 10,000 tonnes of HMS, exceeding initially expected 6,000 tonnes.

·   WHM will be paid 80% of the anticipated final sales price (less costs) on invoice.

·   The balance of the sales price, less costs, shall be paid to WHM within 5 days of the final sale of the product.

·   WHM and Fujax will work together to build a stockpile and to improve the grade of the HMS.

·  Fujax is responsible for, and shall carry all the costs of, transporting, processing assaying and selling the HMS, together with paying all taxes, levies, duties, custom clearance, loading and other charges.

 

Dennis Edmonds, Chief Executive Officer of Kazera Global plc commented: "This is a landmark and transformative moment for Kazera Global. Whale Head Minerals is incredibly fortunate to have such a rich mineral resource that can generate cash with minimal processing. The sale of this initial 10,000 tonnes, which exceeds our initial expectations, demonstrates the strength of the operational capabilities of our investee company. The focus now is on improving margins by cutting transport costs and improving the purity of the end product, as well as selling diamonds. We also eagerly await the granting of a Mining Right over the much bigger area encompassed by 2A. The Board is very proud of the Whale Head Minerals team in South Africa who have worked tirelessly to get us to this stage, and  grateful to Fujax and the numerous people in South Africa who have provided support, as well as all of our shareholders who have been with us throughout this journey."

**ENDS**

For further information, please visit the Company's website at www.kazeraglobal.com or contact:

 

Kazera Global plc
Dennis Edmonds, CEO
kazera@stbridespartners.co.uk
Strand Hanson Limited (Nominated & Financial Adviser and Broker)
Christopher Raggett / Ritchie Balmer
Tel: +44 (0)207 409 3494
St Brides Partners (Financial PR)
Paul Dulieu / Isabel de Salis
kazera@stbridespartners.co.uk

 

 

About Kazera Global plc

Kazera is a global investment company focused on leveraging the skills and expertise of its Board of Directors to develop early-stage mineral exploration and development assets towards meaningful cashflow and production. Its three principal investments are as follows:

 

Alluvial diamond mining through Deep Blue Minerals (Pty) Ltd, Alexander Bay, South Africa

Kazera currently has a 100% direct interest in Deep Blue Minerals, of which 74% is held beneficially by Kazera and 26% is held on behalf of Black Economic Empowerment partners.

 

Heavy Mineral Sands mining (including ilmenite, monazite, rutile, and zircon)  through Whale Head Minerals (Pty) Ltd, Alexander Bay, South Africa.

Kazera currently has a 70% direct beneficial interest in Whale Head Minerals together with the benefit of a loan facility entitling it to receive approximately £38m out of dividends from the other shareholders.

 

Tantalite mining in South-East Namibia (divestment in progress)

As announced on 20 December 2022, Kazera has agreed to dispose of African Tantalum (Pty) Ltd ("Aftan") for a cash consideration of US$13 million plus a debenture payment of 2.5% of the gross sales of produced lithium and tantalum for life-of-mine. Completion of the sale is subject to receipt of full consideration proceeds. Aftan has been deconsolidated from the Company's financial statements with effect from 4 January 2023 because in accordance with the terms of the sale agreement, it has relinquished control of the Aftan in favour of the purchaser, Hebei Xinjian Construction Close Corp ("Hebei Xinjian") with effect from that date. Kazera retains the right to cancel the transaction and retain all amounts paid to date in the event of default by Hebei Xinjian. The Company has now instituted legal proceedings against Hebei for payment of the balance due to it.

 

The Company will consider additional investment opportunities as appropriate, having regard to the Group's future cash flow requirements.

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