REG - Kazera Global PLC - Move To Arbitration On Aftan Sale Agreement

Kazera GlobalAnnouncement

24/09/2024 14:15

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RNS Number : 4743F  Kazera Global PLC  24 September 2024

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.

 

24 September 2024

Kazera Global plc

('Kazera' or 'the Company)

 

Move To Arbitration On Aftan Sale Agreement

 

Kazera Global plc, the AIM-quoted investment company, announces that,
following its RNS on 4 September 2024, it has not received payment of the
circa US$9.5 million owed by Hebei Xinjian Construction ("Xinjian") by the
final deadline of 23 September 2024.

 

As a result, Kazera is now exercising its right to refer the dispute to
arbitration, in accordance with provisions in the Sale Agreement governing the
sale of its 100% interest in African Tantalum (Pty) Limited ("Aftan") to
Xinjian, as previously announced in an RNS on 20 December 2022 (the "Sale
Agreement").

 

The Company has instructed its attorneys to commence arbitration proceedings
with immediate effect. Arbitration will take place in Windhoek, Namibia, with
an expedited timescale for conclusion of 60 business days from the initiation
of arbitration proceedings.

 

Kazera remains fully confident in its legal position regarding the outstanding
debt and looks forward to providing further updates to the market in due
course.

 

The Company can further confirm that alongside the mining of tantalum, Aftan
has received approval in recent weeks to mine lithium. Accordingly, the Board
of Kazera believes that the value placed on Aftan has increased.

 

Dennis Edmonds, Chief Executive Officer of Kazera Global Plc commented: "While
it is disappointing that Xinjian has failed to meet its payment obligations,
we remain entirely confident in our legal position and are now moving forward
at pace with the arbitration process. We remain steadfast in our commitment to
protect the interests of all our shareholders by pursuing the outstanding debt
vigorously and we are confident of a positive outcome."

ENDS

 

For further information visit www. (http://www.) kazeraglobal
(http://www.kazeraglobal.com/) .com (http://www.kazeraglobal.com/) or
contact:

 

 Kazera Global plc                                             kazera@stbridespartners.co.uk (mailto:kazera@stbridespartners.co.uk)

 Dennis Edmonds, CEO                                            

 Cavendish Capital Markets Ltd (Nominated Adviser and Broker)  Tel: +44 (0)207 220 0500

 Derrick Lee / Pearl Kellie (Corporate Finance)

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

 

Forward Looking Statement

This press release contains certain "forward-looking information". All
statements, other than statements of historical fact that address activities,
events or developments that the Company believes, expects or anticipates will
or may occur in the future are deemed forward-looking information.

 

This forward-looking information reflects the current expectations or beliefs
of the Company based on information currently available to the Company as well
as certain assumptions. Forward-looking information is subject to a number of
significant risks and uncertainties and other factors that may cause the
actual results of the Company to differ materially from those discussed in the
forward-looking information, and even if such actual results are realised or
substantially realised, there can be no assurance that they will have the
expected consequences to, or effects on the Company.

 

Any forward-looking information speaks only as of the date on which it is made
and, except as may be required by applicable securities laws, the Company
disclaims any intent or obligation to update any forward-looking information,
whether as a result of new information, future events or results or otherwise.
Although the Company believes that the assumptions inherent in the
forward-looking information are reasonable, forward-looking information is not
a guarantee of future performance and accordingly undue reliance should not be
put on such information due to the inherent uncertainty therein.

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