REG - Kazera Global PLC - Transformational deal on Lithium

Kazera GlobalAnnouncement

20/07/2022 07:00

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RNS Number : 0438T  Kazera Global PLC  20 July 2022

20 July 2022

Kazera Global plc

("Kazera" or the "Company")

Transformational deal on Lithium

 

Kazera Global plc, the AIM quoted investment company, is pleased to announce
that it has signed an agreement to secure an investment of US$ 7.5 million in
return for a 49% stake in the Company's marketing, sales and export subsidiary
("SPV") for all lithium production from the Company's wholly owned mine at
Tantalite Valley, Namibia.

 

The transaction values the Company's lithium assets alone at in excess of
US$15 million.

 

 

Highlights

 

·       Non-dilutive investment of US$7.5 million in cash, machinery
and services

·       Investment sufficient to cover the costs of the processing
plant upgrades required to increase production from the Tantalite Valley mine
and the construction of a lithium processing facility

·       Tantalum production expected to substantially increase from Q4
2022 onwards

·       Lithium production scheduled to commence in Q1 2023

 

 

The Company's wholly owned subsidiary, African Tantalum ("Aftan"), has entered
into a contract with Hebei Xinjian Construction ("Xinjian"), a Namibian based
company, which will see Xinjian investing to acquire 49% of the new SPV to be
formed by Aftan, which will have the sole rights to market the lithium
produced in Tantalite Valley by Aftan.

The investment will consist of a mixture of cash, machinery and services, with
a minimum of US$ 2.5 million payable to Kazera in cash, with US$ 100,000 due
on 25 July 2022, US$ 400,000 by 15 August 2022 and the remaining balance in
instalments, with the last instalment to be paid on or before 31 January 2023.
The value and specifications of any machinery or services will be agreed
between the parties before they are contributed.

The Company is currently extracting lithium as part of its Tantalum mining
process. To separate out the lithium a further process will need to be added
to the Company's current production facility. It is anticipated that this will
be completed during Q4 2022, with the Company aiming to commence lithium sales
during Q1 2023.

Dennis Edmonds, Kazera Chief Executive Officer, commented:

"This deal is completely transformational for Kazera. Not only does it give us
the cash to fund operations in Namibia well beyond when we expect to become
cash generative, it also brings us the machinery and equipment to completely
overhaul the operation.

It will enable us to substantially increase Tantalum production in the near
future, and by Q1 2023 we will also be benefitting from the production of
lithium."

Investor Presentation

Kazera Global plc also is pleased to announce that Dennis Edmonds CEO will
provide a live Investor Update presentation via the Investor Meet Company
platform on 27 July 2022 at 11:00am BST.

The presentation is open to all existing and potential shareholders. Questions
can be submitted pre-event via your Investor Meet Company dashboard up until
9am the day before the meeting or at any time during the live presentation.

Investors can sign up to Investor Meet Company for free and add to meet Kazera
Global plc via:

https://www.investormeetcompany.com/kazera-global-plc/register-investor
(https://www.investormeetcompany.com/kazera-global-plc/register-investor)

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No. 596/2014 ('MAR'). Investor Presentation.

For further information on the Company, visit: www.
(http://www.kazeraglobal.com/) kazeraglobal (http://www.kazeraglobal.com/)
.com (http://www.kazeraglobal.com/)

 

 Kazera Global plc (c/o Camarco)                        Tel: +44 (0)203 757 4980

 Dennis Edmonds (CEO)

 finnCap (Nominated Adviser and Joint Broker)           Tel: +44 (0)207 220 0500

 Christopher Raggett / Tim Harper (Corporate Finance)

                                                        Tel: +44 (0) 207 220 9797

 Peterhouse Capital Limited (Joint Broker)

 Duncan Vasey and Lucy Williams (Corporate Broker)

 Camarco (PR)                                            Tel: +44 (0)20 3781 8331

 Gordon Poole / James Crothers / Hugo Liddy

 

**ENDS**

 

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