Business
Transformational deal on Lithium
Transformational deal on Lithium.
About this update from Kazera Global Plc
[{"type":"text","content":"\n \n \n \n 20 July 2022\n \n \n \n \n Kazera Global plc\n \n \n \n \n (\"Kazera\" or the \"Company\")\n \n \n \n \n Transformational deal on Lithium\n \n \n \n \n \n \n Kazera Global plc, the AIM quoted investment company, is pleased to announce that it has signed an agreement to secure an investment of US$ 7.5 million in return for a 49% stake in the Company's marketing, sales and export subsidiary (\"SPV\") for all lithium production from the Company's wholly owned mine at Tantalite Valley, Namibia.\n \n \n \n \n \n The transaction values the Company's lithium assets alone at in excess of US$15 million.\n \n \n \n \n \n \n \n \n \n Highlights\n \n \n \n \n \n \n \n \n \n ·\n Non-dilutive investment of US$7.5 million in cash, machinery and services\n \n \n ·\n Investment sufficient to cover the costs of the processing plant upgrades required to increase production from the Tantalite Valley mine and the construction of a lithium processing facility\n \n \n ·\n Tantalum production expected to substantially increase from Q4 2022 onwards\n \n \n ·\n Lithium production scheduled to commence in Q1 2023\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n The Company's wholly owned subsidiary, African Tantalum (\"Aftan\"), has entered into a contract with Hebei Xinjian Construction (\"Xinjian\"), a Namibian based company, which will see Xinjian investing to acquire 49% of the new SPV to be formed by Aftan, which will have the sole rights to market the lithium produced in Tantalite Valley by Aftan.\n \n \n The investment will consist of a mixture of cash, machinery and services, with a minimum of US$ 2.5 million payable to Kazera in cash, with US$ 100,000 due on 25 July 2022, US$ 400,000 by 15 August 2022 and the remaining balance in instalments, with the last instalment to be paid on or before 31 January 2023. The value and specifications of any machinery or services will be agreed between the parties before they are contributed.\n \n \n The Company is currently extracting lithium as part of its Tantalum mining process. To separate out the lithium a further process will need to be added to the Company's current production facility. It is anticipated that this will be completed during Q4 2022, with the Company aiming to commence lithium sales during Q1 2023.\n \n \n \n Dennis Edmonds, Kazera Chief E...