Marula Mining
PLC
("Marula'' or the "Company")
11
July
2024
Acquisition of the Kilifi
Manganese Processing Plant in Kenya
Marula Mining (AQSE: MARU A2X: MARU)
an African focused mining and development company, is pleased to
announce that through its wholly owned Kenyan subsidiary, Muchai
Mining Kenya Limited("MMK"), it has signed a binding Terms Sheet
("Terms Sheet") to acquire an 80% shareholding in Agarwal Metals
and Ores Limited ("AMO"), a Kenyan incorporated mineral processing
company. AMO is the registered owner of the Kilifi Manganese
Processing Plant (the "Kilifi Plant") located approximately 60 km
from the Port of Mombasa in the Tezo Area, Kilifi County in
Kenya.
The Kilifi Plant was constructed in
February 2023 and is a fully operational and permitted mineral
processing plant capable of beneficiating approximately 10,000
tonnes per month ("tpm") of manganese ores. Located on 1.31
hectares of freehold land, the processing facilities comprise a
conventional manganese processing plant that includes
a vibrating feeder, tommel scrubber, belt
conveyor, jig separator, vibrating screen, pumps, fine jaw crusher,
magnetic separator and run-of-mine and final manganese product
stockpiling areas. In addition, the Kilifi Plant
has full mains and standby diesel power on site,
adequate water supply, administration and office buildings,
security and logistics blocks, as well as weighbridge and diesel
storage facilities.
The Company is seeking to acquire
existing nearby manganese mining operations and mineral rights to
secure the long-term supply of manganese ore that will be the feed
source to the Kilifi Plant.
Under the commercial terms of the
Terms Sheet, the Company will make a £100,000 cash payment and issue £500,000
worth of new ordinary shares at an issue price of
10 pence per share, being
5,000,000 new ordinary shares ("Initial Consideration Shares") to
the major shareholder of AMO.
On execution of a formal share sale and purchase
agreement and receipt of any regulatory approvals,
which are expected in due course, the Company will make a final
cash payment of £2,000,000 and issue a further £500,000 worth of new
ordinary shares at an issue price of 10 pence per
share. The cash payments will be
made from expected future cash flows generated by the Company from
the Larisoro Manganese Mine, the Blesberg Lithium and Tantalum Mine
as well as from advances
due from AUO Commercial LLC under its existing funding
arrangements.
The acquisition of an 80% majority
interest in AMO is in line with the Company's expansion and growth
plans in East Africa which are focused on the acquisition and
investment in advanced, near term production, cash generating,
battery critical metals mining and mineral processing
opportunities.
Highlights:
·
agreement signed for Marula's wholly owned Kenyan
subsidiary to acquire an 80% interest in the Kilifi
Plant
·
the acquisition further strengthens Marula's
expanding mining and mineral processing operations in Kenya where
it is seeking to complete a dual listing on the Nairobi Securities
Exchange
·
the addition of the Kilifi Plant will further
increase Marula's strategic battery metals portfolio in East Africa
and provide it with an asset capable of immediate production of
manganese ores for the export market
·
the Kilifi Plant benefits from good infrastructure
and is located approx. 60 km from Mombasa Port and just 2.2 km east of the
main Kilifi-Malindi road in Kilifi County
·
construction of the Kilifi Plant was completed in
February 2023 at a cost of approx. KES 220 million and it commenced
processing third-party manganese ores later that quarter before
operations were suspended in H2 2023 as a result of the then
prevailing low manganese ore prices and inability to secure
adequate third party feed
·
service and maintenance work at the Kilifi Plant
by AMO is set to commence later this week ahead of a planned
recommencement of manganese ore processing operations by the end of
July 2024;
·
the Company and MMK is seeking to acquire both existing mining operations and third party
mine feed from existing permitted mining operations to create a
stable long-term supply of manganese ores to the Kilifi
Plant
·
the Company is targeting run of mine ore feed to
the Kilifi Plant of +20% manganese, that has been historically
mined in the region, and which will be upgraded to +30% manganese
after processing through the Kilifi Plant
·
the acquisition of an 80% interest in the Kilifi
Plant follows quickly after the acquisition of a majority interest
in the Kruisrivier Cobalt Mine and demonstrates the Company's
aggressive strategy to expand its operational and development stage
strategic battery metals portfolio in Africa
·
completion of the formal
share sale and purchase documentation between AMO's existing
shareholder, the Company and MMK is expected to be completed in due
course
·
the Company is proposing to meet the cash payments
due under the commercial terms of the Terms Sheet from expected
cash flows generated by the Company from the Larisoro Manganese
Mine, the Blesberg Lithium and Tantalum Mine and also from advances
due from AUO Commercial LLC under its existing funding
arrangements.
Admission
Application has been made for the
Initial Consideration Shares to be admitted to trading on the Aquis
Stock Exchange AQSE Growth Market and A2X Markets on or around 17
July 2024 ("Admission") and will rank pari passu with the ordinary shares of
the Company in issue. The Company's ordinary shares remain
suspended from trading.
Total Voting Rights
Following Admission, the Company's
issued share capital will comprise 186,715,665 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
186,715,665. 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:
We
are thrilled to announce the acquisition of an 80% interest in the
manganese processing plant located here in Kenya at Kilifi. This
strategic move marks a significant milestone for us, as we
significantly enhance our battery metal production and processing
capabilities and which further aligns with our long-term vision of
being one of the leading mining companies in the region that is
committed to sustainable and environmentally responsible mining and
processing activities.
"By securing this relatively new manganese processing
facility, we are not only boosting our operational efficiency but
also strengthening our commitment to responsible and eco-friendly
mining practices. This acquisition represents a substantial step
forward in our mission to drive growth and innovation not only in
Kenya but in the East African region and into global
markets.
"The acquisition strengthens our battery metals profile,
positioning us as a key player in the rapidly growing battery
metals market, and fosters further economic growth and employment
opportunities in Kenya. We are confident that this will create
lasting value for our stakeholders, from local communities to our
international investors.
"I
look forward to provide further updates in the coming weeks as we
finalise this acquisition, secure long-term manganese ore feed,
negotiate sales and offtake agreements and commence processing
operations and mineral exports and sales."
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;
the Blesberg Lithium and Tantalum Mine and Kruisrivier Cobalt Mine
both in South Africa, the Kinusi Copper Mine, the Nyorinyori
Graphite Project, the NyoriGreen Graphite Project and the Bagamoyo
Graphite Project all in Tanzania and the Nkombwa Hill Project in
Zambia. 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 AQUIS Stock Exchange (AQSE) in London and A2X
Markets in South Africa. Marula is exploring opportunities to admit
its shares to trading on Kenya's Nairobi Securities Exchange and
South Africa's Johannesburg Stock Exchange.
For
enquiries contact:
Marula Mining PLC
Jason Brewer,
Chief Executive Officer
Faith Kinyanjui Mumbi
Investor Relations
|
Email : jason@marulamining.com
Email : info@marulamining.com
|
AQSE Corporate Adviser
Cairn Financial Advisers LLP,
Liam Murray / Ludovico Lazzaretti
|
+44 (0)20
7213 0880
|
Broker
Peterhouse Capital Limited,
Charles Goodfellow / Duncan Vasey
|
+44
(0)20 7469 0930
|
Financial PR and IR
BlytheRay
Tim
Blythe / Megan Ray / Said Izagaren
|
+44 (0)20 7138 3204
|
A2X
Advisor
AcaciaCap Advisors Proprietary Limited
Michelle Krastanov
|
+27 (11)
480 8500
|
Caution:
Certain statements in this
announcement, are, or may be deemed to be, forward looking
statements. Forward looking statements are identified by their use
of terms and phrases such as ''believe'', ''could'', "should"
''envisage'', ''estimate'', ''intend'', ''may'', ''plan'',
''potentially'', "expect", ''will'' or the negative of those,
variations or comparable expressions, including references to
assumptions. These forward-looking statements are not based on
historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of
operations, performance, future capital and other expenditures
(including the amount, nature and sources of funding thereof),
competitive advantages, business prospects and opportunities. Such
forward looking statements reflect the Directors' current beliefs
and assumptions and are based on information currently available to
the Directors.