REG - Kazera Global PLC - Operational Update: Whale Head Minerals

Kazera GlobalAnnouncement

03/07/2025 07:00

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RNS Number : 5068P  Kazera Global PLC  03 July 2025

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018, as amended by virtue of the Market
Abuse (Amendment) (EU Exit) Regulations 2019.

 

3 July 2025

 

Kazera Global plc

("Kazera" or the "Company")

 

Operational Update: Whale Head Minerals

Production Process and Product Quality Enhanced

Kazera Global plc, the AIM-quoted investment company, is pleased to provide an
operational update on Whale Head Minerals ("WHM"), its heavy mineral sands
("HMS") project in South Africa.

Operations at WHM continue to progress well, with new processing
infrastructure now commissioned and product sales continuing under the
existing offtake agreement with Fujax South Africa (Pty) Ltd. Interest from a
specialist garnet offtake partner further supports the commercial potential of
WHM's multi-mineral resource, while additional technology options are being
evaluated to support scalable future growth.

Spiral Circuit Installed on Time and on Budget

.

Twelve double-stage spirals, used to improve separation efficiency and
concentrate quality, have now been successfully installed at the WHM site.
Delivered on time and within budget, the spirals represent a key upgrade to
the processing plant.

The spirals are currently being fine-tuned to optimise performance. The system
has been designed with a removable feed bin, offering flexibility to add
additional spirals, sand cyclones, or sluice decks as production requirements
evolve.

Initial testing has shown significant improvements in TiO₂ content across
the processing stages. The final concentrate is now exceeding the 24% TiO₂
threshold typically required to meet market specifications. Indicative
percentages of TiO₂ at the various stages are shown below:

 Titanium Content
 Location     Beach (TiO(2))  Post Trommel (TiO(2))  Post Spiral (TiO(2))
 North/South  16.88%          23.35-25.02%           30.02-31.69%

 

Positive Test Results and Strategic Engagements

WHM is working with two leading mineral processing equipment providers, who
are conducting detailed tests to help guide long-term optimisation of the
plant. Early results from both have been very positive.

Additionally, a company focused on garnet offtake attended recent tests and
has expressed strong interest in the quality of WHM's garnet production.
Discussions are now underway regarding a potential partnership, under which
the garnet company will supply an additional set of spirals at their own cost
to facilitate targeted garnet extraction and the removal of further silica.
This would reduce their transport costs while improving the overall quality of
WHM's end product.

Low-Cost, Scalable Technology Under Evaluation

WHM is also in discussions with a company offering an innovative sluice-type
separation system. Initial trials, particularly in relation to zircon
recovery, have been promising. Further laboratory testing is underway, with
results expected in the coming weeks.

The system offers high throughput (up to 70 tonnes per hour per unit) and a
significantly lower capital cost than traditional spiral installations, making
it a potentially valuable option for scalable, cost-efficient expansion in the
future.

Outlook: Scalable Foundation in Place

WHM continues to demonstrate its value as both a revenue-generating operation
and a platform for future expansion. The Company's mining right application
for the adjacent 2A concession remains under review with the Department of
Mineral Resources and Energy, and further updates on this process will be
provided in due course.

Dennis Edmonds, CEO of Kazera, commented:

"WHM continues to perform strongly, both operationally and commercially. The
successful installation of the spiral circuit and growing interest from a
specialist garnet partner, highlight the quality and versatility of the
resource. With further testing underway and scalable technology options being
explored, we believe WHM is well placed to deliver long-term value. The
technical success of this project is a very positive indicator of the value of
the potential represented by the long-awaited Mining Right over 2A, which has
the initial potential to be 34 times bigger than the current project."

**ENDS**

 

 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 Limited (Financial PR)                        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  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 was subject to receipt of full
consideration proceeds. Aftan was deconsolidated from the Company's financial
statements with effect from 4 January 2023 because, in accordance with the
terms of the sale agreement, it had relinquished control of Aftan in favour of
the purchaser, Hebei Xinjian Construction Close Corp ("Hebei Xinjian") with
effect from that date. Kazera retained the right to cancel the transaction and
retain all amounts paid to date in the event of default by Hebei Xinjian.
Following default by Hebei Xinjian, Kazera initiated legal proceedings in
September 2024, which have now concluded in Kazera's favour with an
arbitration award exceeding US$11.9 million, including interest, plus coverage
of legal costs. Kazera is now assessing the most effective legal and
commercially beneficial avenues to enforce the award and recover the full
amount due.

 

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

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