REG - Kazera Global PLC - National Nuclear Regulator Certification Received

Kazera GlobalAnnouncement

15/08/2024 07:00

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RNS Number : 5029A  Kazera Global PLC  15 August 2024

This announcement contains inside information

 

15 August 2024

Kazera Global plc

('Kazera' or 'the Company)

 

National Nuclear Regulator Certification Received

 

Mining and production of Heavy Mineral Sands to commence shortly

 

Kazera Global plc, the AIM-quoted investment company, is delighted to announce
that it has received certification from the National Nuclear Regulator ("NNR")
in South Africa, which enables its Whale Head Minerals project to imminently
commence the mining and production of Heavy Mineral Sands ("HMS").

 

Background

The Company has a Mining Permit over a 5-hectare beach deposit of Heavy
Mineral Sands ("HMS") in Alexander Bay, Northern Cape, South Africa which
contains predominantly Ilmenite and Garnet, but with significant amounts of
Zircon, Rutile and, to a lesser extent, Monazite.

 

In June 2023, whilst arranging test samples for interested off-takers, the
Company identified that certain elements of the sands were radioactive. This
required all mining operations to be suspended whilst necessary infrastructure
and procedures were put in place to comply with the NNR's requirements for
certification.

 

The Company subsequently built the required facilities and introduced the
required operating protocols, with the NNR conducting a detailed review of its
application for certification. This has culminated in the NNR granting the
Company permission, following a final inspection of the Company's operations
later this month, to commence mining and processing at its site.

 

Potential Off Takers ("POTs")

The Company has remained engaged with several POTs in both South Africa and
overseas who have approached the Company with a view to purchasing its HMS.
With the NNR Certificate of Registration now in place, these discussions can
be progressed, with samples expected to be provided to the POTs once mining
and production commence towards the end of this month. Following the analysis
of these samples, the Company expects to be able to finalise contracts with
POTs.

 

Offtake options open to the Company range from HMS product being sold as run
of mine at the mine gate, to the introduction of a magnetic separator to sell
specific minerals to end users. A potential offtaker has agreed, in principle,
to finance this second option. The Company will consider all options available
to it and seek to balance short-term cashflow generation with longer term
value creation.

 

Dennis Edmonds, Chief Executive Officer of Kazera Global Plc commented "The
NNR issuing Whale Head Minerals with its Certificate of Registration removes
the final hurdle for the project. Following a final on-site inspection, which
will take place by the end of August, we will immediately commence mining our
HMS and seek to finalise agreements with off-takers. In the interim, we will
build a stockpile of product so that we are able to deliver high volumes of
HMS product as soon as off-take agreements are in place.

 

"This is an incredibly exciting time for the Company. We have always known
that we have a very pure deposit of HMS and, whilst the discovery of
radioactive elements meant we had to delay the start of production, the
presence of rutile, zircon, and monazite, which typically have a much higher
commercial value than ilmenite, suggests the value of the deposit is even
higher than we had originally thought.

 

"With the NNR certificate in hand, the commencement of production imminent,
and numerous off takers competing to buy our product, I believe that Kazera is
now in the best position that it has been in since I took the reins as CEO in
2021.

 

"I am immensely grateful to the whole Kazera team, particularly those in South
Africa, for their dedication and perseverance in getting us to this point and
to Tracarta and Richard Jennings for facilitating the recent loan to avoid the
need to undertake an equity raise pending what we expect to be significant
cashflows. I would also like to thank our shareholders for their patience over
the past year. It has been a frustrating period for us all but, with this
hurdle removed, the future looks very promising."

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.

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