Business
100% disposal of African Tantalum Limited
100% disposal of African Tantalum Limited.
About this update from Kazera Global Plc
[{"type":"text","content":"\n \n \n \n 20 December 2022\n \n \n \n \n Kazera Global plc\n \n \n \n \n (\"Kazera\" or the \"Company\")\n \n \n \n \n 100% disposal of African Tantalum (Proprietary) Limited\n \n \n \n Kazera Global plc (\"Kazera Global\", \"Kazera\" or \"the Company\"), the AIM quoted investment company, is delighted to announce that it has signed a definitive agreement to sell its 100% interest in African Tantalum (Proprietary) Limited (\"Aftan\") to Hebei Xinjian Construction (\"Xinjian\") for cash consideration of USD13,000,000.\n \n \n \n \n \n \n Highlights\n \n \n \n \n \n \n \n \n ·\n The agreement comprises the sale of all the shares and associated loans in Aftan for cash consideration of USD13,000,000. Kazera will retain the right to receive a debenture payment equivalent to 2.5% of gross sales of produced Lithium & Tantalum for the life of the mine.\n \n \n ·\n Full operational control will pass to Xinjian on the effective transaction date, with 100% ownership of the shares only passing once Kazera has been paid in full for both the loan and the share sale expected by [DATE].\n \n \n ·\n This transaction represents the first successful realization of returns on a strategic investment made by Kazera. The strategic exit will allow Kazera to invest in its other projects, principally the exciting Heavy Mineral Sands opportunity in South Africa, without the need for additional capital raising.\n \n \n ·\n Management attention will now be freed up to focus on further strategic investment opportunities.\n \n \n ·\n Heavy Mineral Sands operation now in production with 2022 targets already comfortably met.\n \n \n \n \n \n \n \n This transaction supersedes the transaction announced on 20 July 2022.\n \n \n \n \n \n \n \n \n \n Dennis Edmonds, Kazera Chief Executive Officer, commented:\n \n \n \n \n \"This is a hugely significant moment for Kazera, and I am very pleased to announce this sale delivering USD13m in cash to the Company. We have been working with Xinjian under the JV since July and are confident in their ability to progress the asset through its next development phase, whilst we retain exposure to its growing cash flow profile through the debenture stream.\n \n \n \n \n This represents a real milestone for Kazera as the first realization of returns from an investment in line with our stated...