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Kazera Global PLC on Tuesday said it has signed a definitive agreement to sell its 100% interest in African Tantalum (Proprietary) Ltd to Hebei Xinjian Construction for $13.0 million.
Kazera is a diamonds and rare earths explorer in South Africa and Namibia. Its shares were up 2.6% to 1.00 pence each in London on Tuesday afternoon, having hit an intraday high of 1.30p.
In July, Kazera’s wholly owned marketing, sales and export subsidiary African Tantalum entered into a contract with Xinjian, a Namibian-based company.
Under the agreement, Xinjian said it would invest $7.5 million to acquire 49% of a new subsidiary formed by African Tantalum. Kazera said that the investment will consist of a mixture of cash, machinery and services.
On Tuesday, Kazera said it has now sold its 100% interest in African Tantalum for $13.0 million in cash.
Kazera noted that it will retain the right to receive a debenture payment equivalent to 2.5% of gross sales of lithium and tantalum produced for the life of the mine. Meanwhile, full operational control will pass to Xinjian.
Kazera explained that management attention will now focus on further strategic investment opportunities. It added that Heavy Mineral Sands operation is now in production, with 2022 targets already ‘comfortably’ met.
Chief Executive Dennis Edmonds said: ‘This represents a real milestone for Kazera as the first realization of returns from an investment in line with our stated strategy as an investing company of building value in our investments whilst maintaining flexibility for opportunistic exit points.
‘This strategic exit will also enable management to focus on our existing projects and further potential investments. We see major opportunities in the present environment and look forward to delivering sustainable growth to the benefit of all our stakeholders in the near term.’
By Sophie Rose, Alliance News reporter
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