REG - Kazera Global PLC - Operational & Corporate Update

Kazera GlobalAnnouncement

30/07/2024 10:30

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RNS Number : 3985Y  Kazera Global PLC  30 July 2024

30 July 2024

 

This announcement contains inside information

 

Kazera Global plc

("Kazera" or "the Company")

 

Operational & Corporate Update

 

Kazera Global plc (AIM: KZG), the AIM-quoted investment company, is pleased to
provide an update on key operational and corporate developments.

 

Highlights

·    Start of diamond sands mining and processing at Deep Blue Minerals.

·    Optimistic about the imminent start of heavy mineral sands production
at Whale Head Minerals - strong indications received regarding the National
Nuclear Regulator permit.

·    Board to be strengthened with the proposed appointment of Dr John
Wardle as Chairman.

 

Deep Blue Minerals (diamonds)

Mining of diamond sands is underway, with initial processing at Alexkor's
Muisvlak plant. The resulting diamond sands concentrate will be stockpiled and
then processed by the Company using a FlowSort, which employs X-Ray technology
to identify diamonds. Following this, secure and supervised hand sorting and
grading of the diamond output will be conducted before the diamonds are
prepared for sale. Ahead of its commissioning, Alexkor required the
manufacturer to make several minor adaptations to the FlowSort, which have now
been completed. Accordingly, the FlowSort has been signed off by the
manufacturer, with Alexkor's approval pending.

 

Whale Head Minerals (heavy mineral sands)

The Company is awaiting the grant of a permit from the National Nuclear
Regulator ("NNR") and can confirm that all required submissions have now been
made and approved by NNR. The Company is confident that the permit will be
received imminently. Upon receipt, and implementation of any further requests
by the NNR, heavy mineral sands production will be able to commence, with
custom made, on-site plant and machinery ready for processing.

 

Additionally, the Company remains engaged with multiple parties in relation to
offtake sales of the various heavy mineral constituents.

 

Namibian operations

Discussions continue with various third parties which have expressed an
interest in the Namibian project. The Company understand that Hebei Xinjiang
("Hebei") continues to invest in the mine and is active at the adjacent Orange
River Pegmatite operations. Whilst the Company is confident in its legal
position in relation to the ownership of the shares in TVM and its claim to
approaching US$10m of due debt, it has not rejected the idea of concluding a
restructured deal with Hebei in the near term. In the interim, Kazera remains
the sole shareholder in the Namibian subsidiaries.

 

Board Changes

It is intended that Dr John Wardle will join the Board of Kazera in the role
of Non-Executive Chairman, subject to satisfactory completion of customary due
diligence by the Company's nominated adviser. He is currently Executive
Chairman of AIM-listed Ironveld plc and was CEO of Amerisur Resources Plc, the
AIM-listed oil & gas company, from 2007 to 2020 when it was acquired for
approximately £242 million. Prior to this, he held roles with BP, Britoil,
Emerald Energy and Pebercan. A further announcement regarding the proposed
appointment of Dr Wardle to the Board will be made in due course.

 

Peter Wilson, Non-Executive Director of the Company, has given notice of his
intention to resign from the Board with effect from 30 October 2024.

 

Major Shareholder Change

As announced on 16 July 2024, following the default by African Mineral Sands
Pte Ltd ("AMS") on a loan from Catalyse Capital Ltd and its related parties,
including R S & C A Jennings (together "Catalyse"), a total of 936,599,523
ordinary shares in the Company, representing 29.9% of the Company's issued
share capital, have been transferred from AMS to Catalyse.

 

Dennis Edmonds, Chief Executive Officer of Kazera Global plc commented: "The
start of diamond sands mining and processing at Deep Blue Minerals represents
a major milestone for our company, especially after years of challenges. We
are also optimistic about the imminent start of heavy mineral sands production
at Whale Head Minerals, given the strong indications we've received regarding
our National Nuclear Regulator permit. This development is expected to
generate significant cash flow.

 

"I would like to extend my gratitude to Peter Wilson for his dedication and
support over the past year. We look forward to welcoming John as our new
Chairman once the necessary approvals are in place; his expertise and
leadership will be invaluable, and we are confident that he will open doors to
a range of new opportunities.

 

"To conclude, we remain confident in our strategic direction, the promising
future of our projects and our ability to create material value for all
shareholders."

 

**ENDS**

 

 Kazera Global plc                                             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 90% direct interest in Deep Blue Minerals, of which 64%
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 60% direct beneficial interest in Whale Head Minerals.

 

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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