Marula Mining (AQSE: MARU), an African-focused mining investment company, is pleased to announce that it has entered into a binding heads of agreement with Tanzanian mining company, Takela Mining Tanzania Limited (“Takela”), and have secured a 49% commercial interest in the Kinusi Copper Mining Project (“Kinusi”) which comprise 10 granted copper mining licences (the “Licences”) located in Tanzania.
The signing of the agreement with Takela follows a detailed legal and technical due diligence process and site visits to inspect the Licences’ areas, the existing small scale mining operations and initial sampling of some of the copper ores mined and visible mineralisation.
- Marula has secured a 49% commercial interest in 10 primary mining licences through a binding heads of agreement with Takela
- The Licences are valid for a period of 7 years and are located in Kinusi in Mpwapwa District in the Dodoma Region of central Tanzania
- Investment is firmly in line with the Company’s battery metals focus and identification of high-grade, near-term production and cashflow generating projects
- Marula will advance funds to Takela to allow them to complete additional exploration and expansion and development on the Licences and to the current small scale mining activities
- Marula has reimbursed US$50,000 of costs incurred to date by Takela and will also issue 4,507,500 ordinary shares at a price of 2.0p (“Consideration Shares”) in the Company to Takela and which are to be subject to a 12-month lock-up period
- On site investigations by the Company’s management during the due diligence period identified a potential high grade and shallow copper ore body that appears to extend for over one kilometre and remains open in all directions
- Samples of the copper ore mined and azurite and malachite copper mineralisation exposed in shallow pits and shafts on the Licences and taken by Marula during the due diligence period by management reported copper grades of 7.28% copper, 19.12% copper and 31.32% copper using a hand-held XRF
- The Company’s local geologists will be joining Takela’s management onsite later this month to advance the initial work programs and accelerated exploration activities
- Meetings are currently taking place in Nairobi between Takela’s senior management and the Company’s Chairman and CEO to agree a development and expansion timetable
- Southern Metal Processing Pty Limited, the Company’s mineral processing and mining consultants, are already developing preliminary designs for a simple and conventional ore processing plant to fast-track the production of a high-grade copper concentrate
- Discussions are also being advanced with offtake parties for the sale and export of a high-grade copper product
About the Licences
Takela is the 100% holder of 10 Primary Mining Licences located in the Kinusi area in Mpwapwa District in Tanzania. The Licences 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 4,507,500 Consideration Shares to be admitted to trading on the Aquis Stock Exchange Growth Market (“Admission”). Admission is expected to occur at 8:00 am on or around 10 October 2022.
Total Voting Rights
Following Admission, the Company’s issued share capital will comprise 64,507,248 ordinary shares of 0.01p each, with each share carrying the right to one vote.
Jason Brewer, Marula Mining PLC CEO said:
“I am delighted to confirm that we are moving ahead quickly and delivering on the Company’s strategy of investing in high-grade and near-term battery metals focused mining projects here in Africa.
“The investment with Takela on their Licences and their small scale and high-grade copper mining activities adds to our portfolio of investments in green transition metal assets. Copper in Africa is a natural fit for Marula and our strategy given its use in electric vehicles and the associated infrastructure, and renewable energy such as wind turbines, and its location.
“Due diligence has highlighted the impressive near-term production and cashflow credentials of the Licences, important factors in the Company’s decision to invest and the exceptional high copper grades reported by the hand-held XRF give us a lot of confidence moving ahead.
“We look forward to working together with Takela in developing these Licences further, creating additional value to Marula and for its shareholders. We anticipate providing further updates on the Licences’ progress soon.”
Edward Ruheni, Director of Takela Mining Tanzania Limited said:
“It is a real pleasure to have Marula onboard and support us in our copper mining and exploration activities here in Tanzania. After careful consideration, we identified Marula as the perfect partner to advance the Licences to a near term production decision. The synergies in terms of sustainability and strategy mean we look forward to a long and successful relationship with one another.”
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]
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