|
Kazera Global PLC on Wednesday said it has secured a $7.5 million investment in return for a 49% stake in its subsidiary for all lithium production from its mine at Tantalite Valley, Namibia.
Shares in the diamonds and rare earths explorer in South Africa and Namibia were up 10% to 0.91 pence each in London on Wednesday morning.
Kazera's wholly owned marketing, sales and export subsidiary African Tantalum Ltd has entered into a contract with Hebei Xinjian Construction, a Namibian-based company.
Under the agreement, Xinjian will invest $7.5 million to acquire 49% of the new subsidiary which will be formed by African Tantalum.
The subsidiary will have the sole rights to market the lithium produced in Tantalite Valley by African Tantalum.
Kazera said that the investment will consist of a mixture of cash, machinery and services. A minimum of $2.5 million will be payable to Kazera in cash, with $100,000 due on July 25, $400,000 due by August 15 and the remaining balance in instalments, with the final one to be paid on or before January 31, 2023.
It added that the value and specifications of any machinery or services will be agreed between the parties before they are contributed.
Further, Kazera said that it is currently extracting lithium as part of its mining process, but to separate it out a further process will need to be added to its current production facility. It is expected that this will be completed during the fourth quarter of this year, with the company aiming to begin lithium sales during the first quarter of 2023.
Kazera Chief Executive Officer Dennis Edmonds said: ‘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.’
Copyright 2022 Alliance News Limited. All Rights Reserved.
|
