Business
WHM Acquisition-Completion of Cash Generative HMS
WHM Acquisition-Completion of Cash Generative HMS.
About this update from Kazera Global Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 4591N\n Kazera Global PLC\n 30 September 2021\n \n \n \n \n 30 September 2021\n \n \n Kazera Global plc\n \n \n \n (\n \n \n \"\n \n \n Kazera\n \n \n \" or the \"Company\"\n \n \n )\n \n \n \n Whale Head Minerals Acquisition - Completion of Cash Generative Heavy Mineral Sands Project\n \n \n Kazera Global plc, the AIM quoted investment company, is pleased to announce that, further to previous announcements, it has agreed with Tectonic Gold PLC to acquire a 60% controlling stake in Whale Head Minerals (Pty) Ltd (\"\n WHM\n \"). A consideration of $250,000 of Kazera ordinary shares will be paid for the 60% share in WHM which owns two Heavy Mineral Sands (\"\n HMS\n \") opportunities in the Port Nolloth/ Alexander Bay area of South Africa. The JORC compliant Walviskop project being acquired is expected to bring near term cashflow within 6 months of a Mining Permit being granted over a 5Ha beach sand deposit at Walviskop.\n \n \n \n \n \n \n \n \n Highlights\n \n \n \n \n \n · \n Kazera will acquire 60% of WHM (10% will be retained by Tectonic and 30% is held on trust for future Black Economic Empowerment Partners).\n \n \n · \n Price to be satisfied by the issue of $250,000 worth of Kazera Ordinary shares at the volume weighted average price for 30 days (1.358 pence) preceding 28 September 2021. The number of shares being issued is 13,527,957. These shares will be locked in for a period of 1 year.\n \n \n · \n Acquisition brings near term cash flow with the Company aiming, within 6 months of the Mining Permit being granted, to produce circa 6,000 tons of HMS per month, achieving an estimated gross profit of in excess of $300,000 per month based on current prices.\n \n \n · \n WHM is awaiting the final grant of a Mining Permit over a 5Ha beach sand deposit at Walviskop with:\n \n \n o \n JORC Indicated Mineral Resource of 3.11 million tons of Valuable Heavy Minerals at a grade of 61.2%\n \n \n o \n Predominant Valuable Heavy Minerals are Garnet (30.29% of ROM) and Ilmenite (27.54% of ROM). \n \n \n o \n Also present are Zircon and Rutile which have not been included in the modelling.\n \n \n o \n NPV of approximately £150 million (applying a 20% discount rate) based on current FX rates.\n \n \n · \n WHM is also in the process of applying for a Pros...