Marula Mining (AQSE: MARU) an African focused mining and development company, is pleased to announce that it has entered into a binding heads of agreement with Tanzanian mining company, Takela Mining Tanzania Limited (“Takela”), to secure a 75% interest in 10 granted graphite licences that make up the Nyorinyori Graphite Project (the “Project”), located in the Simanjiro District, in the Manyara Region of Tanzania (the “Agreement”), for a total consideration of up to £400,000 through staged equity payments and subject to certain milestones being achieved.
The signing of the Agreement with Takela further strengthens the Company’s position both in graphite in Tanzania, and in the battery metals sector, with Marula holding project interests in lithium, graphite, copper, niobium, tantalum and rare earths metals.
The Takela Mining team here in Nairobi today to finalise our transaction with them to acquire a 75% commercial interest in the 10 granted mining licenses that make up the Nyorinyori Graphite Project in Tanzania. @MarulaPlc #MARU #Graphite pic.twitter.com/TBr8fBxWFr
— Jason Brewer (@JB_MiningAfrica) February 17, 2023
The Agreement with Takela is in addition to the 49% commercial interest the Company secured in the Kinusi copper mining project located in Tanzania through Takela, as previously announced on 4 October 2022.
Highlights:
- Marula has entered into a binding heads of agreement with Takela to secure a 75% interest in 10 granted graphite licenses that make up the Project located in Simanjiro District in the Manyara Region of Tanzania
- Initial consideration of £100,000 to be completed through the issue of 1,333,333 shares at a price of 7.5 pence (“Initial Consideration Shares”), which are subject to a voluntary 12 month lock up provision
- The Initial Consideration Shares are to be issued at a premium of approximately 52 per cent. to the closing middle market price of 4.95 pence per share on 16 February 2023, and at a premium of 100 per cent. to the recent conditional subscription by Q Global, announced 31 January 2023
- Three further share-based payments, each of £100,000, will be issued to Takela based on a 30-day volume weighted average price per share at the time of issue and subject to the achievement of key technical milestones including; completion of initial exploration program, resource definition drilling and release of a JORC Compliant Resource statement and a decision to mine being reached by the Company
- Under the terms of the Agreement, Marula will be responsible to fund the first US$100,000 of exploration activities and is focused on advancing the Project through to completion of a feasibility study and a decision to mine being reached by the Company
- The Project is considered highly prospective for graphite, with shallow graphite mineralisation observed on the license areas and small-scale mining of graphite already taking place with sales of bagged mined product being made to Chinese companies in the local area
- The Company is currently finalising its plans to commence an initial exploration program targeting high-grade, jumbo and large flake graphite mineralisation across the 10 granted mining licenses
About the Licences
Takela is the 100% holder of 10 primary mining licences located in the Nyorinyori area in Simanjiro District, in the Manyara Region of Tanzania (the “Licences”).
The Licences are contiguous and extend over a combined area of approx. 86 hectares and are valid for a 7-year period to 2 February 2030 to allow the holder to prospect and mine for graphite.
Admission
Application has been made for the 1,333,333 Initial Consideration Shares to be admitted to trading on the Aquis Stock Exchange Growth Market on or around 23 February 2023 (“Admission”) and will rank pari passu with the ordinary shares of the Company in issue.
Total Voting Rights
Following Admission, the Company’s issued share capital will comprise 106,053,081 ordinary shares of 0.01p each, with each share carrying the right to one vote, therefore the total number of voting rights in the Company will be 106,053,081. This figure may be used by shareholders as the denominator for calculations by which they will determine if they are required to notify their interest in the Company, or a change to their interest in the Company, under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.
Jason Brewer, Marula Mining PLC CEO said:
“Once again, and in line with our strategy, I am delighted to share that with this agreement, Marula has further expanded its footprint in the battery metal sector. Tanzania is a jurisdiction we are becoming familiar with and the team at Takela is one that we are comfortable working with and whom have already demonstrated an ability at identifying high-value and near term mining opportunities.
“Our decision to expand our interest in the graphite sector, is attributable to both the opportunities we see in Tanzania and the positive outlook for the sector and demand for graphite which makes it an essential component in many green energy technologies, including electric vehicle batteries and hydrogen fuel cells. We intend to continue to position ourselves strategically in Tanzania and broader afield in East Africa.
“We are extremely happy to have worked with Takela again on this agreement and we look forward to exploring what the Directors believe is an exciting project with their team and where already we are able to observe shallow graphite mineralisation across the license area. We look forward to updating shareholders on our progress and further developments in Tanzania.”
The Directors of Marula are responsible for the contents of this announcement. This announcement contains inside information for the purposes of UK Market Abuse Regulation.
About Marula Mining
Marula Mining (AQSE: MARU) is an African focused battery metals investment and exploration company and has interests in several high value mine projects in Africa; Blesberg Lithium and Tantalum Mine in South Africa, Nkombwa Hill Project in Zambia and Kinusi Copper mine, Bagamoyo Graphite Project and Nyorinyori Graphite Project in Tanzania. As we advance operations at these battery metals focused projects, Marula will continue to build and expand its interests in other high-quality projects in Africa.
Marula’s strategy is to identify and invest in advanced and high-value mining projects throughout East, Central and Southern Africa that the Directors believe would deliver returns for its shareholders. The Board and management team aims to establish Marula as a socially and environmentally responsible, sustainable, and profitable producer of critical metals and commodities that are of increasingly strategic importance to modern technologies and the global economy.
Marula’s shares are traded on the AQUIS Stock Exchange (AQSE), Marula is exploring opportunities to admit its shares to trading on AIM, the market operated by the London Stock Exchange Group plc, and Kenya’s Nairobi Securities Exchange.
For enquiries contact:
Marula Mining PLC
Jason Brewer,
Chief Executive Officer
Faith Kinyanjui Mumbi
Investor Relations
Email: [email protected]
Email: [email protected]
