REG - Kazera Global PLC - First Sale of 10,000 Tonnes of Heavy Mineral Sands

Kazera GlobalAnnouncement

01/04/2025 07:00

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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 (http://www.kazeraglobal.com) or contact:

 

 Kazera Global plc                                                     kazera@stbridespartners.co.uk

 Dennis Edmonds, CEO
 Strand Hanson Limited (Nominated & Financial Adviser and Broker)      Tel: +44 (0)207 409 3494

 Christopher Raggett / Ritchie Balmer
 St Brides Partners (Financial PR)                                     kazera@stbridespartners.co.uk (mailto:kazera@stbridespartners.co.uk)

 Paul Dulieu / Isabel de Salis

 

 

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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