Marula Proposes to Now Proceed to Acquire a 100% Interest in the Blesberg Project
Marula Mining (AQSE: MARU), an African focused mining investment company, is pleased to announce that, together with its mining and processing contractors, Southern Metal Processing Pty Limited (“SMP”), it has entered into an agreement with a South African based subsidiary of global commodity group Traxys SARL, under which the first US$2.5 million of a US$5 million lithium pre-payment facility has been advanced for the purchase of high-grade lithium ore from the Blesberg Lithium and Tantalum Project in South Africa (the “Project” or “Blesberg”).
§ US$5 million lithium pre-payment facility signed for the purchase of the first two shipments of high-grade ‘run-of-mine” lithium ore produced from Blesberg
§ An initial tranche of US$2.5 million has now been advanced and received by the Company and SMP
§ US$1.7 million of the funds are to be used by the Company to increase its ownership in Blesberg to 100%, subject to receipt of all necessary regulatory approvals in the UK and South Africa
§ The US$0.8 million balance is to be used by SMP to fully fund the first phase capital and working capital costs to bring the Project into production of high-grade lithium ore from existing stockpiles on site at Blesberg
§ Production of the first 1,000t of high-grade lithium ore is expected to occur early in 2023
§ First sales are also expected by 14 January 2023
§ The second tranche of US$2.5 million is anticipated to be advanced in Q1 2023 once the first sales have been made by the Company to Southern Jade Resources Pty Limited
§ SMP has successfully completed mineral recovery trials of the stockpiles and their management team are on site and are accelerating all regulatory approvals and site works in order to allow commencement of high-grade lithium ore production at Blesberg
US$5 Million Lithium Pre-payment
The Company and SMP have entered into an agreement with Southern Jade Resources Pty Limited, a subsidiary of Traxys SARL, for the advance of US$5 million against sales of high-grade lithium ore from Blesberg.
The lithium funding agreement, which is secured against the existing stockpiles at Blesberg, provides for the funding to be advanced in two tranches each of US$2.5 million and against sales of lithium ore with a minimum grade of 5.00% Li2O.
The first tranche of US$2.5 million has now been advanced and allows the Company and its mining and processing contractors to fund 100% of the first phase capital costs and working capital costs to develop the necessary mine infrastructure and get Blesberg into production.
First sales are expected to be completed by 14 January 2023. A further US$2.5 million will then be made available subject to delivery of the second batch of high-grade lithium ore which is expected to occur in Q1 2023.
Increasing Blesberg Shareholding to 100%
The Board has elected to use approx. US$1.7 million of the initial US$2.5 million already advanced under the funding agreement, to increase its shareholding in Blesberg from 5% to 100%, which will be held by Marula Lithium Mining South Africa (Pty) Limited, a wholly owned subsidiary of the Company.
The increase in its shareholding in Blesberg to 100% will be subject to receipt of all necessary regulatory and shareholder approvals in the UK and South Africa. The Company will work with its consultants and lawyers in South Africa and advisers in the UK to secure these approvals.
The decision to increase its shareholding in Blesberg to 100% comes at a time of record high lithium concentrate prices and demand.
Jason Brewer, Marula Mining PLC CEO said:
“Another milestone announcement, and one that all at Marula believe to be transformational for the Company.
“This funding reaffirms our belief in Blesberg, and provides third party validation to our battery metals strategy and confirms Blesberg as a high-grade lithium asset that is capable of being brought into production quickly as a lithium producer, with sales to an international commodity trading group.
“To be able to secure this funding to both increase our ownership in this exciting lithium battery metal project and fully fund it into production is a testament to the strength of the Blesberg Mine, the strong fundamentals of the lithium market and our strategy and focus on such advanced projects in Africa. It is also a testament to the strength of our management team and technical consultants and contractors.
“To be close to being a new lithium producer, soon after refocusing the Company’s strategy and to achieve this through a structured and non-dilutive financing against future lithium production is a major win and reward for shareholders.
“The funding allows for our contractor SMP to further accelerate the next phase of development work at Blesberg as we move closer to producing high-value, high-grade lithium ore and delivering cashflow for all our stakeholders. I look forward to sharing further updates 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.
For enquiries contact:
Marula Mining PLC
Chief Executive Officer
Faith Kinyanjui Mumbi
Email : [email protected]
Email : [email protected]
If anyone reads this article found it useful, helpful? Then please subscribe www.share-talk.com or follow SHARE TALK on our Twitter page for future updates.
Terms of Website Use
All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned