Marula Mining (AQSE: MARU) an African focused mining and development company, is pleased to announce that, further to the announcement released on 4 October 2022, it has amended the terms of its agreement with Tanzanian mining company.
Takela Mining Tanzania Limited (“Takela”), and has agreed to increase its interest in the 10 granted mining licenses that comprise the Kinusi Copper Project located in Mpwapwa District in the Dodoma Region of central Tanzania, from 49% to 75%, for a total consideration of up to US$550,000 through cash and staged equity payments and subject to certain milestones being achieved.
The decision to increase the Company’s commercial interest in the Kinusi Copper Project follows recent site visits by the Company’s Board, which confirmed the high-grade copper mineralisation and potential that the Directors believe exists there, particularly with the identification of 30 additional surface exposures of copper mineralisation across the project area in the previous quarter.
The terms and key milestones referred to in the previous announcement of 4 October 2022 have been waived by mutual consent from the Company and Takela and replaced with the current terms of the agreement.
The increased interest now secured in the high-grade Kinusi Copper Project is in line with the Company’s strategy of securing majority interests in high-value and advanced projects in the battery metals sector in Africa.
- Marula and Takela have agreed to amend the terms of the binding Heads of Agreement on the Kinusi Copper Project, with Marula increasing its commercial interest in the project from 49% to a majority 75%
- Initial consideration of US$150,000 comprising of US$50,000 in cash and US$100,000 through the issue of 1,116,667 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 46 per cent. to the closing middle market price of 5.15 pence per share on 17 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, will be issued to Takela based on the 30-day volume weighted average price per share at the time of issue and subject to the achievement of key technical milestones including; US$100,000 in shares to be issued on completion of the initial exploration program, US$100,000 in shares to be issued on completion of resource definition drilling and release of a JORC Compliant Resource statement and US$200,000 in shares to be issued on a decision to mine being reached by the Company
- The decision to increase the Company’s commercial interest in the Kinusi Copper Project follows recent site visits by the Company’s Board, which confirmed the high-grade copper mineralisation and potential that is believed to exist there, particularly with the identification of 30 additional surface exposures of copper mineralisation across the project area in the previous quarter
- Previous samples reported by the Company of copper ore mined from the small-scale activities on site and azurite and malachite copper mineralisation exposed in shallow pits and shafts has been tested using a hand-held XRF and reported copper grades of 7.28% copper, 19.12% copper and 31.32% copper
- Work by experienced Tanzanian geological and mining consultancy group Geofields Tanzania Limited is due to commence shortly at the Kinusi Copper Project and is to be completed in Q2 2023 with the release of results to follow
- The investment in Kinusi is considered to be in line with the Company’s battery metals focus and strategy in identifying opportunities which are considered high-grade, and with the potential to be near-term production and cashflow generating projects
About the Kinusi Copper Project
The Kinusi Copper Project is located in the Kinusi area in in Mpwapwa District in the Dodoma Region of central Tanzania. Takela is the holder of 10 primary mining licences that extend over a combined area of approx. 91 hectares with 8 of the licenses contiguous.
The Licences are valid for a 7-year period to 30 September 2029 and allow the holder to prospect and mine for copper.
Application has been made for the 1,116,667 Initial Consideration Shares to be admitted to trading on the Aquis Stock Exchange Growth Market on or around 24 February 2023 (“Admission”) and will rank pari passu with the ordinary shares of the Company in issue. The Initial Consideration Shares are subject to a voluntary 12 month lock up provision.
Total Voting Rights
Following Admission, the Company’s issued share capital will comprise 107,169,748 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 107,169,748. 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:
“Our now increased 75% interest in the Kinusi Copper Project is a testament to our belief in the high-value and near-term potential of this project.
“The recent site visit, by my fellow Board members and continued strength in the copper market has given us the confidence to move ahead and increase our interest.
“With copper prices at such high levels and around the US$9,000 per tonne mark, and demand expected to increase due to its use in green technologies, such as electric vehicles and the associated infrastructure, Marula finds itself well positioned with its majority position now secured at the Kinusi Copper Project.
“I look forward to updating our shareholders and stakeholders, on our progress at Kinusi, in due course.”
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
Chief Executive Officer
Faith Kinyanjui Mumbi
Email: [email protected]
Email: [email protected]
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