REG - Shuka Minerals PLC - Update re Kabwe transaction and Operational update

Shuka MineralsAnnouncement

04/09/2025 10:00

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RNS Number : 0324Y  Shuka Minerals PLC  04 September 2025

4 September 2025

Shuka Minerals Plc

("Shuka" or the "Company")

Update re Kabwe transaction and Operational update

Shuka Minerals Plc (AIM/AltX: SKA), an African focused mine operator and
developer, provides an update on the Company's proposed acquisition
("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 1 July 2025, the conditions to completion of the Acquisition
sale and purchase agreement have been satisfied, following which the Company
issued a notice to draw down funds pursuant to the increased loan, entered
into on 30 June 2025, with  Gathoni Muchai Investments Limited ("GMI"), to be
used to satisfy the $1.35m balance of cash consideration due to the LEM
vendors and additionally to contribute towards general working capital. GMI,
on 3 September 2025, informed the Company that the remittance of the funds has
been delayed due to administrative matters and required regulatory clearances
in Kenya. While GMI expect to resolve these matters, they are exploring
alternate means to expedite payment, which GMI expect to be resolved within
the next 10 business days. GMI have further confirmed to the Company their
financial capacity to meet their obligations under the increased GMI loan
facility.

The LEM vendors remain supportive of progressing to completion of the
Acquisition, which will  occur following payment to the LEM vendors of the
balance of cash consideration and issue of the consideration shares  and
further warrants (as detailed in the 1 July 2025 announcement), and the
transfer of LEM shares to the Company.

On 30 June 2025 the Company updated that  60,000 tonnes of "fines" were
stockpiled on surface at the Company's Rukwa operation in Tanzania, and the
Company hoped to achieve a sales price of USD7-8 per tonne for this material,
which will generate valuable cashflow. The Company remains in discussions with
potential purchasers for product and will provide an update in due course. At
Rukwa, the pits are now dewatered and road & bridge repairs are being
completed to allow commencement of production. Subject to securing funding for
the purchase, or lease,  of new equipment at Rukwa, and testing and
restarting the wash plant, sales will re- commence, targeting a ramp up to
production rate to 4,000-5,000 tpcm.

Prior to the receipt of funds from anticipated sales of fines, or additional
funding provided under the GMI increased loan, the Company has sufficient
funds which, along with the continued support of creditors, the Board believes
is sufficient for its near term requirements.

 A further announcement will be made in due course.

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, which capacity is under
consideration for upgrading by management depending on funding and 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 is listed on the Alternative Exchange ('AltX') in South Africa and
admitted to trading on AIM in the United Kingdom ('UK').

 

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
 AcaciaCap Advisors Propriety Limited  +27 (11) 480 8500

 JSE Sponsor and Listing Advisor

 Michelle Krastanov
 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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