REG - Shuka Minerals PLC - Corporate and Operational Update

Shuka MineralsAnnouncement

14/02/2025 07:15

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RNS Number : 0915X  Shuka Minerals PLC  14 February 2025

14 February 2025

Shuka Minerals Plc

("Shuka" or the "Company")

Corporate and Operational Update

Shuka Minerals Plc (AIM: SKA), an African focused mine operator and developer,
is pleased to provide an update on the Company's proposed acquisition of the
Zambian mining and exploration company, Leopard Exploration and Mining Limited
("LEM") and the Kabwe Zinc Mine ("Kabwe Mine") located in central Zambia
following the signing in December 2024 of a conditional Share Purchase
Agreement ("SPA") with the LEM shareholders (the "Kabwe Acquisition").

Since the start of 2025, the Company and its legal and corporate advisers have
been working closely to finalise the outstanding conditions, to complete the
Kabwe Acquisition ahead of the expected March 2025 completion date and
undertaking preparatory work to drive the project forward following
completion. Technical site visits have been undertaken in Zambia and meetings
in Lusaka and South Africa have also been held with key stakeholders and the
Company's existing, and potentially new, providers of finance.

Key points:

·    Over the past 3 weeks, the Company's executive management and key
advisers and consultants have been in Southern and East Africa.

·    Positive meetings have been held with a number of key stakeholders in
respect to the Kabwe Acquisition and the Company's existing Rukwa coal mining
operations in Tanzania.

·    A successful site visit was undertaken to the Kabwe Mine and
surrounding areas.

·    During the site visit, the Company's recently appointed CEO, Richard
Lloyd, was able to observe high-grade zinc mineralisation from identified
deposits within the Kabwe Mine, that were outcropping at surface, as well as
local small scale zinc and base metals mining and processing operations.

·    A number of samples were taken during the site visit and these have
been submitted to ALS Zambia's laboratory in Lusaka for grade and
metallurgical testing.

·    The assay results from these samples are expected to be received
later in the current quarter

·    Key stakeholders in both Zambia's capital city, Lusaka and in Kabwe,
and including the Kabwe District Commissioner and local mine operators and
service providers, were extremely engaged and positive about the Company's
proposed acquisition of the Kabwe Mine.

·    Additional support has been received by the Minister of Mines,
Permanent Secretary and the Director of the Zambian Mining Cadastre as the
Company looks to establish its presence in Zambia and Kabwe.

·    The Company's executive management and consultants are continuing to
review and compile historical geological, geophysical and mine development
data for the Kabwe Mine project.

·    The Company is finalising the appointment of Zambian-headquartered
GeoQuest Ltd, a fully independent geological and environmental consultancy and
contract services group and a company well known to the Company's CEO, to
assist in the Kabwe Mine project development site activities and planning.

·    New project budgets and implementation schedules are also being
finalised and will be submitted to the Board for approval later this quarter.

·    The Company continues to carefully manage its working capital
position and its creditors whilst progressing discussions with AUO Commercial
Brokerage as previously announced and also continuing to work with its
financial advisers and a number of European and African based groups on its
longer term financing arrangements. This includes the funding necessary to
meet cash consideration due to the LEM Shareholders under the SPA to enable
the Company to complete the Kabwe Acquisition, and funding required to
commence its exploration and development work at the Kabwe Mine
post-completion.

·    As advised on 2 December 2024, the Company announced an agreement
with Gathoni Muchai Investments Limited ("GMI"), its second largest
shareholder, for an unsecured, interest-free and non-convertible loan of
£500,000 (the "GMI Loan"). The Company has drawn £250,000 of this to date
and further drawdowns are planned in the current quarter.

·    The Company continues to work with its local management team at the
Rukwa Coal Mine and has also commenced discussions with potential operational
partners.

 

Richard Lloyd, CEO, said:

 

"A great deal has happened in a very short space of time since my engagement
in mid-December 2024 and a new Shuka board having been put in place, with the
focus being to complete the acquisition and re-develop the famous Kabwe Mine
in Zambia.

 

We continue to understand the full potential of Kabwe and the support from
potential funders in various forms of funding ideas is encouraging. The
budgeting and timeframes need to be clearly thought out.

 

 I thank our expanding team and advisers for their unwavering support and
great ideas. The support locally in Kabwe and nationally for such an iconic
Zambian asset is extremely gratifying."

 

About Shuka Minerals

 

Shuka Minerals plc, is a dynamic and innovative mining and development
company, committed to exploring and harnessing Africa's mineral resources.
Shuka's focus lies in the acquisition and development of valuable minerals,
aiming to contribute to the sustainable growth and development of local
communities.

 

Shuka has an operating coal mine in Tanzania, of which its capacity is under
consideration for upgrading by management subject to funding and the Company's
strategic direction. Shuka is also considering projects in Zambia, South
Africa, and other African countries that are rich in copper, lead, and zinc.

 

The Company has signed a conditional Share Purchase Agreement with LEM to
acquire 100% of LEM's share capital. LEM is the registered holder of a
large-scale mining license 12848-HQ-LML issued in December 2014 for a period
of 25 years, and which includes the historical Kabwe Mine located in central
Zambia, approx. 110km north of the capital city of Lusaka.

 

About the Kabwe Mine

 

The Kabwe Mine, was previously operated by Anglo American plc and Zambia
Consolidated Copper Mines Limited, and was mined continuously for 88 years
until its closure in 1994, due to the then current commodity prices. It was
ranked as one of the world's highest-grade zinc and lead mining operations and
is considered one of the famous mines in Africa, holding a position of
national economic importance in Zambia.

 

Upon completion of the Acquisition and subject to securing the requisite
funding, the Company will commence a 3-phase exploration and development
program at the Kabwe Mine, as part of its plans to re-commence both open-pit
and underground mining and processing operations.

 

This 3-phase program, as also recommended by Behre Dolbear, will comprise:

 

(i)         a high-resolution geophysical survey,

(ii)       a JORC Code 2012 resource drilling program, updated
metallurgical test work and additional environmental and mining studies; and

(iii)       detailed feasibility study work and underground mine
refurbishment and new access decline activities as well as the establishment
of new ore processing facilities and value addition in respect of the
production of refined metals products.

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR") and is disclosed
in accordance with the Company's obligations under Article 17 of MAR.

 

For Enquiries:

 Shuka Minerals Plc                   +44 (0) 7990 503007

 Richard Lloyd - CEO
 Strand Hanson Limited                +44 (0) 20 7409 3494

 Financial and Nominated Adviser

 James Harris | Richard Johnson
 Tavira Securities Limited            +44 (0) 20 7100 5100

 Joint Broker

 Oliver Stansfield | Jonathan Evans
 Peterhouse Capital Limited

 Joint Broker                         +44 (0)20 7469 0930

 Charles Goodfellow | Duncan Vasey
 Investor Relations

 Faith Kinyanjui Mumbi                +254 746 849 110

 

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