Marula Mining PLC has announced an agreement to acquire 100% of Takela Mining Tanzania Limited (TMTL), the company that owns the Kinusi Copper Mine, through its wholly owned subsidiary, MMTL.
The deal, valued at £2,500,000, will be structured in three instalments:
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£500,000 upon signing the share sale agreement
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£750,000 upon the conversion of primary licenses into a full mining license
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£1,250,000 once commercial sales exceed 10,000 tonnes
Takela shareholders will have the option to receive payment in cash or in new Marula Mining shares, priced at 10 pence per share.
In addition, Takela shareholders will benefit from a 1.5% net smelter royalty (NSR) on the gross sales generated from the Kinusi Mine.
As part of Tanzanian mining regulations, the Government of Tanzania will retain a 16% free carried interest in the project.
This acquisition marks a significant step in Marula Mining’s strategy to expand its copper production footprint in East Africa.
Chris Attwood, General Manager of Operations for East Africa for Marula Mining, said:
“My recent site visit, accompanied by our Chairman Richard Lloyd, and Head of Exploration Collins Asseto, was my first to the Kinusi Mine and I am excited by the potential that I have seen and the opportunity to expand the operations to generate returns for the Company and its shareholders.
“Acquiring 100% ownership of Takela and the Kinusi Mine is a key strategic step that will allow the Company to progress our development plans and streamline operations.
“The licence consolidation will also enhance our operational efficiency.“
