Jason flying visit to London from Africa this weekend was a chance too good not to miss, and he kindly agreed to come into the London studio to give this exclusive interview.
Marula Mining PLC has an experienced team with a proven track record across the entire project development pipeline. Collectively, they present an in-depth understanding of the mining and exploration sector.
- 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.
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.”
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.
For enquiries contact:
Marula Mining PLC
Chief Executive Officer
Faith Kinyanjui Mumbi
Email: [email protected]
Email: [email protected]
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