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, Kusini Gateaway Industrial Park Limited (“KGIP”).
Securing a 73% commercial interest in the Bagamoyo Graphite Project, which extends over an area of approx. 180 hectares and comprises 22 granted graphite mining licenses (the “Licenses”) located in Tanzania.
The signing of the agreement with KGIP further strengthens the Company’s position in the battery metals sector, with Marula now holding project interests in the lithium, graphite, copper, niobium, tantalum and rare earths metals.
Highlights:
- MARU has secured a 73% commercial interest in 22 primary mining licenses through a binding heads of agreement signed with KGIP
- The Licences are valid for a period of seven years through to August 2029 and are located in the Bagamoyo District in the Pwanai Region of Tanzania
- The Licenses are close to existing graphite mining and exploration activities and have provided the opportunity for Marula to secure a major strategic position in Tanzania’s growing graphite exploration and mine sector
- The transaction with KGIP is firmly in line with the Company’s battery metals strategy and in identifying projects that it believes have the potential to be advanced rapidly through to production
- Under the terms of the binding heads of agreement, Marula will fund all exploration and development costs through to commencement of commercial graphite mining and processing operations
- Marula will now commence an initial exploration program within three months across all 22 licenses, targeting high-grade, jumbo and large flake graphite mineralisation (“Phase 1 Program”)
- Upon completion of the Phase 1 Program, Marula will have the option to proceed with further exploration activities and feasibility studies on up to 10 of the Licenses (“Phase 2 Program”) subject to making a payment to KGIP of US$50,000 per License, 50% in cash and 50% through the issue of ordinary shares in the Company
- The Phase 2 Program requires minimum expenditure of US$500,000 over a 10-month period and completion of an economic study for the establishment of a commercial graphite mining and processing operation
- On completion of the Phase 2 Program, and the Company proceeding with a decision to mine, Marula will make a final payment to KGIP of US$100,000, 50% in cash and 50% through the issue of ordinary shares in the Company
- Marula senior management and technical consultants will be meeting with KGIP in Dar es Salaam, Tanzania and on site in December and plans are underway to commence site activities in January 2023
Jason Brewer, Marula Mining PLC CEO said:
“I am delighted to confirm that Marula Mining continues to grow its assets and strengthen its strategy in the battery metals sector. This agreement with KGIP is a great push towards supporting the global transition to clean energy and clearly outlines Marula’s growing position in the critical metals sector and our ambitions to build our business here in Africa.
“Tanzania now hosts two of our current mineral assets, and we are glad to continue consolidating relations in the region.
“Our management team is looking forward to working hand in hand with the KGIP team and in commencing our initial exploration and site activities in the New Year.
“Graphite is an essential ingredient in the manufacture of electric vehicle batteries, and as global demand for electric vehicles is expected to drive a massive increase in demand for graphite, we intend to position Marula as best as we can to mine and supply graphite to global markets.
“I believe this relationship with KGIP will be a very positive one and the start of broader cooperation in Tanzania and I look forward to updating shareholders on our progress here on these graphite licenses and on other future developments in Tanzania.”
Saeed Cabdalla, Kusini Gateaway Industrial Park Limited COO said:
“KGIP is delighted to be working closely with Marula, an organisation which we believe brings a great deal of credibility and a growing reputation in East Africa and in the battery metals sector.
“As KGIP we intend to leverage Marula’s considerable experience and expertise throughout this collaboration, and we look forward to working with them as we advance our graphite project towards development.”
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 and Bagamoyo Graphite Project both in Tanzania. As we advance operations in the projects, Marula is open to looking into other high-quality commodities in several jurisdictions.
Marula aims at identifying and investing in advanced and high-value mining projects throughout East, Central and Southern Africa that can deliver rapidly for its shareholders and can be taken through to production and generate positive returns for all stakeholders. Our 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 quoted on the AQUIS Stock Exchange (AQSE) and is exploring opportunities to dual list on the London Stock Exchange’s AIM Market and Kenya’s Nairobi Securities Exchange.
For enquiries contact:
| Marula Mining PLC Jason Brewer, Chief Executive Officer Faith Kinyanjui Mumbi |
Email: [email protected] Email: [email protected] |
