Business
Acquisition of further stake in DBM & WHM
Acquisition of further stake in DBM & WHM.
About this update from Kazera Global Plc
[{"type":"text","content":"\n\nThis announcement contains inside information for the purposes of Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.\n \n7 August 2024\nKazera Global plc\n(\"Kazera\" or \"the Company\")\n \nAcquisition of further stake in Deep Blue Minerals and Whale Head Minerals\n \nKazera Global plc (AIM: KZG), the AIM-quoted investment company, is pleased to announce that it has entered into an agreement with Tectonic Gold PLC (\"Tectonic\") to purchase Tectonic's 10% shareholdings in both Deep Blue Minerals (Pty) Ltd (\"DBM\") and Whale Head Minerals (Pty) Ltd (\"WHM\"), along with Tectonic's economic interest in loans it has with WHM's Black Economic Empowerment (\"BEE\") partners. This will bring Kazera's beneficial interest in WHM to 70% and its beneficial interest in DBM to 74%.\n \nHighlights\n· Acquiring 10% of the issued share capital of both DBM and WHM, along with the economic benefit of loans with a nominal value of R900 million (approximately USD49m / £38m), (together, the \"Assets\").\n· Total consideration of USD500,000, comprising USD150,000 in cash to be paid by 13 August 2024, and USD350,000 to be satisfied through the issue of 27,110,947 shares in the Company with a deemed value of 1p per share.\n \nBackground\nThe shares in DBM (the diamond mining company) and WHM (the heavy mineral sands mining company) will be acquired from Tectonic, which retained a 10%, non-diluting, interest in both companies having been their original owner. Under South African law, companies are required to issue 30% of their shares to formerly disenfranchised people under a BEE policy. Typically, these shares are issued without any payment occurring at the time but with the issuing company granting the BEE partners loans for the shares' value to be repaid out of future dividends. In the case of WHM, Tectonic retained the right to appoint the BEE partners and receive the benefit of these loans, which have a nominal value of R600million (approximately USD32.4m / £25.4m) as agreed between Tectonic and the BEE partners. This value was guided by the £150m Net Present Value (\"NPV\") of the WHM heavy mineral sa...