Kazera Global lands fully funded development route
Kazera Global PLC (AIM:KZG) said it has secured a fully funded development route for its flagship heavy mineral sands project in South Africa, handing funding and execution of the mining operation to a Chinese-backed industrial partner while retaining a cost-free 20% share of production.
The AIM-quoted investment company said its subsidiary Whale Head Minerals had signed a long-term mining cooperation and production sharing agreement with South Africa AT Investments, or SAI, covering the Walviskop operation and, subject to grant, the broader 2A Mining Right area.
Under the deal, SAI will fund all capital expenditure, operating costs, infrastructure, equipment deployment and working capital for the covered mining and processing operations. WHM will retain 20% of all physical HMS products produced, with SAI entitled to the remaining 80%.
Kazera said it expects a US$750,000 advance payment against future sales within five business days of the agreement becoming effective, followed by a further US$1.75 million once the 2A Mining Right is granted. First production under SAI’s development programme is targeted by the end of 2026.
A mine plan setting production and grade targets is due within 30 days of the effective date, including six-month, 12-month and ongoing targets. Kazera said SAI-funded HMS mining is also expected to generate diamond-bearing gravels, which are excluded from the production sharing deal and remain for the account of its Deep Blue Minerals subsidiary.
