Marula Mining plc (AQSE: MARU; A2X: MAR) has taken another significant step towards restarting production at its South African manganese operations after signing a formal shareholders’ agreement for the Tonto Tshipi and Derdepoort Manganese Mines.
The agreement follows the successful completion of legal, technical and financial due diligence and formalises Marula’s acquisition of an initial 50% interest, with the option to increase its stake to 70%, in the special purpose vehicle that owns both mining assets.
The company has also approved the mine development plan and operating budget required to recommence production, although implementation remains conditional on securing long-term offtake and funding agreements.
Marula said negotiations are progressing with a major global commodity trading group over a long-term manganese offtake agreement, while approximately 80% of the required working capital is expected to be provided through the existing Gathoni Muchai Investments shareholder loan facility. The balance is anticipated to come from additional loan facilities and potential prepayment funding linked to the proposed offtake agreement.
The company cautioned that these commercial arrangements have not yet been finalised and there is no guarantee they will complete on the currently envisaged terms.
The projects offer substantial resource potential. The Tonto Tshipi mining right covers more than 30,700 hectares, where historical exploration has outlined manganese resources of approximately 38.9 million tonnes grading 37% manganese oxide (MnO).
Meanwhile, the fully permitted Derdepoort Manganese Mine hosts JORC-compliant Proven and Probable Ore Reserves of 4.38 million tonnes grading 34.78% MnO, together with 7.32 million tonnes of additional Indicated and Inferred Resources grading 33.12% MnO.
Derdepoort also benefits from existing processing infrastructure, including crushing, screening, washing, gravity separation and milling facilities, supporting a potentially rapid return to production.
Chief executive Jason Brewer said the shareholder agreement establishes the ownership, governance and operational framework needed to move both projects towards production. He added that the combination of defined reserves, valid mining rights, existing permits and operational plant makes Tonto Tshipi and Derdepoort compelling near-term production opportunities as discussions over funding and offtake continue.
