This is in accordance with the Company's investing policy to achieve shareholder returns through direct investments in companies and accretive projects in
Transaction Highlights
o Acquisition of controlling interest in the
o Rare Earth Elements are a major constituent material in the manufacturing of magnets which are used for electronic vehicles and turbines
o New country entry, in an area of significant local and national infrastructure, supported by a new, progressive Mining Act and fast-growing exploration and mining presence
o Two initial exploration targets:
o Buru Hill's PL305 license, which has a previous JORC compliant exploration target of 27Mt @1.89% grade for 510Kt Total Rare Earth elements ("TREO's") and;
o Kuge area, PL303 licence, which has demonstrated extensive zones of elevated Light Rare Earth Elements within drilling along a strike length of 500m
o At-surface mineralisation presents highly favourable conditions for economic recovery
o JORC Compliant Resource and Scoping Study expected within 6 months
o Planned, low-impact work programme to progress licences to the granting of a Definitive Feasibility study for a cost of up to
o Historic detailed data estimates approximately 65,000 tonnes of Ce, 52,000 tonnes of Lanthanum and 18,000 tonnes of Nd from an assumed low recovery rate of 50% of the top 50m layer of the resource
o Terms of the acquisition are found below
"At Kazera, we are continually looking at new and exciting opportunities to deliver shareholder value both through operational delivery, but also through accretive acquisitions. The acquisition of a 71% interest in
"With our diamond operation already in production, tantalum about to come on stream and the expected imminent resolution of the issues around our HMS licence, the Company will soon have three separate revenue streams. This acquisition represents an exciting new opportunity for our Company to utilise its increasing cash flow to deliver material growth and a step change in outlook for our shareholders."
Rationale and Background to the Acquisition
Establishing a JORC compliant Resource and Scoping Study will only take approximately 6 months and will require a detailed survey as well as resampling of the core samples and revised modelling to calculate revised tonnages and grades. We anticipate having a Definitive Feasibility Study in hand within 24-30 months. Extensive historical work has been already been undertaken and a vast amount of information on the project already exists.
Transaction Details
As per the terms of the acquisition, Kazera will acquire a 71% interest in
o First tranche, of £250,000 at 1.5p per share, locked in for one year.
o Second Tranche, of £250,000 at completion of the Definitive Feasibility Study ("DFS"), at the lower of 2.5p per share or the 10 days VWAP preceding the DFS RNS announcement, also locked in for one year.
o Third Tranche, of £250,000 on initial ore production at the lower of 2.5p per share or the 10 days VWAP preceding the RNS announcement of initial production. No share lock in.
Identified exploration milestones will be funded by Kazera and will lead to completion of a DFS and facilitate the granting of a Mining License over the project. Cumulatively, these technical milestones are expected to cost up to
As part of the transaction, Kazera will also grant an option to
If CI elect to not exercise the option, the current shareholders in
This announcement contains inside information for the purposes of Article 7 of Regulation (
For further information on the Company, visit: www. kazeraglobal .com
finnCap (Nominated Adviser and Joint Broker)
Tel: +44 (0)207 220 0500
Tel: +44 (0) 207 220 9797
Camarco (PR)
Tel: +44 (0)20 3781 8331
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