REG - Shuka Minerals PLC - Update on Kabwe and Approval of 90-Day Extension

Shuka MineralsAnnouncement

14/03/2025 07:00

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RNS Number : 6545A  Shuka Minerals PLC  14 March 2025

14 March 2025

Shuka Minerals Plc

("Shuka" or the "Company")

Update on the Kabwe Zinc Mine Acquisition

Approval of 90-Day Extension to Complete Transaction

Shuka Minerals Plc (AIM: SKA), the African-focused mining and exploration
company, is pleased to provide an update on its 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.

As announced on 13 December 2024, the Company signed a conditional Share
Purchase Agreement ("SPA") to acquire 100% of LEM's share capital from its
shareholders ("LEM Shareholders") in a share and cash-based transaction
(the "Acquisition"). Completion of the Acquisition was due to occur by 13
March 2025, and was subject to, amongst other things, receipt of all necessary
regulatory approvals in Zambia, including approval from the Competition and
Consumer Protection Commission ("CCPC"), and the Company completing a
successful debt or equity capital raise to pay the cash consideration due to
the LEM Shareholders.

The Company can confirm that it has received all but one of the regulatory
approvals in Zambia required to complete the Acquisition, with the only
outstanding approval being from the CCPC, which the Company's lawyers in
Zambia expect to be received in Q2 2025. As a result of the delay, both the
LEM Shareholders and the Company have, in accordance with the SPA, agreed to
extend the completion date of the Acquisition by 90 days to 11 June 2025. No
penalties or fees were incurred for the extension. The Company's management
are confident that this approval will be received within this revised
timeline.

In addition, since announcing the Kabwe Mine acquisition, the Company's
executive management team has been working with its major shareholders,
advisers, brokers and other potential debt funders to also ensure that it has
the necessary funding in place to meet the remaining cash consideration due to
the LEM Shareholders under the SPA and to fund its working capital and planned
initial exploration expenditure at the Kabwe Mine. The Company can advise that
these funding discussions have progressed well over the past quarter and are
continuing with a number of finance groups in London and in Africa. These
discussions are focussed on the sourcing of capital of a non-dilutive nature
at PLC level wherever possible.

The Board remains confident in securing the necessary capital to support the
completion of the Kabwe Mine acqusition, which is considered to be a
transformational acquisition for the Company and its shareholders.

Further updates on the Company's financing plans and confirmation of the
receipt of the outstanding regulatory approval will be made in due course.

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.

 

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.

 

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.

 

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.

 

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            +44 (0) 20 7469 0930

 Joint Broker

 Charles Goodfellow | Duncan Vasey
 Investor Relations                    +254 (0) 746 849 110

 Faith Kinyanjui Mumbi

 

 

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