REG - Kazera Global PLC - Heavy Mineral Sands Project Update

Kazera GlobalAnnouncement

01/05/2024 07:00

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RNS Number : 6922M  Kazera Global PLC  01 May 2024

1 May 2024

Kazera Global plc

("Kazera" or "the Company")

 

Heavy Mineral Sands Project Update

 

Kazera Global plc (AIM: KZG), the AIM-quoted investment company, is pleased to
provide an update on operations at its Whale Head Minerals Pty Ltd ("WHM")
Heavy Mineral Sands Project in Alexander Bay, South Africa.

 

HMS Plant

The Company is pleased to confirm that all mechanical commissioning work has
now been completed at the WHM heavy mineral sands plant. This includes
building reinforced concrete slabs, reassembling machinery, and building and
connecting conveyors, bins and pumps . Final electrical commissioning work is
now underway and is expected to be completed within the next few weeks.

 

National Nuclear Regulator Permit

The Company has been advised that WHM's submission for a nuclear permit has
been reviewed by the National Nuclear Regulator ("NNR") but that recent
changes within the NNR now requires companies to provide additional
information as to how they will meet financial obligations associated with any
nuclear authorisation granted.

 

These financial obligations are not expected to be of a material nature for
WHM, will be funded from cashflow, and underwritten by the Company. The
Company has now provided the NNR with all required additional information and
awaits a response. It is anticipated that the appropriate permit will be
issued soon, which will allow heavy mineral sands production and sales to
commence.

 

Dennis Edmonds, CEO of Kazera Global commented: "The recent changes to the
National Nuclear Regulator Act are frustrating but, we believe, very much a
box ticking exercise in Whale Head Mineral's case in light of our strong
forecasted cash flows.  With the requested additional information now lodged,
our team is now focussed on completing the electrical work and on final
commissioning. At that point, and assuming there are no further delays in the
granting of the nuclear permits, we look forward to commencing production and
sales."

**ENDS**

 

 Kazera Global plc                                               kazera@stbridespartners.co.uk (mailto:kazera@stbridespartners.co.uk)   

 Dennis Edmonds, CEO                                               
 Cavendish Capital Markets Ltd (Nominated Adviser and Broker)    Tel: +44 (0)207 220 0500  

 Derrick Lee / Pearl Kellie (Corporate Finance)

   
 St Brides Partners (Financial PR)                               kazera@stbridespartners.co.uk (mailto: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 90% direct interest in Deep Blue Minerals, of which 64%
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 60% direct beneficial interest in Whale Head Minerals.

 

Tantalite mining in South-East Namibia (divestment in progress)

As announced on 20 December 2022, Kazera has 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 is subject to receipt of full
consideration proceeds. Aftan has been deconsolidated from the Company's
financial statements with effect from 4 January 2023 because in accordance
with the terms of the sale agreement, it has relinquished control of the Aftan
in favour of the purchaser, Hebei Xinjian Construction Close Corp ("Hebei
Xinjian") with effect from that date. Kazera retains the right to cancel the
transaction and retain all amounts paid to date in the event of default by
Hebei Xinjian.

 

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

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