Namibia Update and Overview

RNS Number : 1113H

Kazera Global PLC

01 December 2020

 

01 December 2020

Kazera Global plc

Namibia Update and Overview

Kazera Global plc ("Kazera Global", "Kazera" or "the Company"), the AIM quoted investment company, is pleased to update the market on progress to date and on its operations in Namibia and a potential strategic equity investment in the Company.

Exploration Results at Tantalum Valley Mine

Following the exploration of just 30% of Tantalum Valley Mine, the Company has identified the presence of three different minerals in commercially viable quantities at the following average grades across the area explored:

· tantalite at grades exceeding 25%;

· lithium at grades exceeding 4% which, with a flotation plant extension, could be increased to 6%;

· feldspar at grades exceeding 12 % to supply high quality ceramics and glass smelters among others.

· Samples of feldspar were collected and analysed by the Ministry of Mines and Energy in collaboration with experts from Bundesanstalt fur Geowissenschaften and Rohstoffe ("BGR"), Germany and were presented to the Company showing that the grades were very encouraging and could be of use in both the high end ceramics and glass industries

· The Company anticipates relatively low costs of production since the minerals are in the same ore body and share a production process.

The critical pathway to monetising each mineral remains construction of the Orange River Pipeline, which now has all the necessary government approvals to supply vital water supply to TVM.  The Company requires substantial funding to be able to commence construction and a further update in this regard is provided below.

Memorandum of Understanding for Further Exploration and Prospecting Licenses

The Company has entered into a Memorandum of Understanding ("MoU") with Manschaft Mining and Energy ("Manschaft") the holder of five exploration and prospecting licences ("EPLs") in central and north western sections of Namibia. Pursuant to the terms of the MoU, Manschaft has granted the Company an exclusive right to evaluate each of the EPLs with a view to partnering with Manschaft to exploit the minerals present therein. The EPLs are valid until October 2024. There is no obligation on the Company to pursue the EPLs or to expend any capital save for its own human resources in analysing the relevant data and conducting site visits.

Brief details of the four EPLs are provided below:

· EPL7238  

· Tantalite, Lithium, Tin and Niobium products

· UIS, Located 3 hrs from Windhoek, 4 hrs from the International airport and 3 hrs from Walvis Bay shipping port

· Proven resources exist

· Tantalite Valley Processing Plant will be capable of processing these minerals

· Current small-scale miners operating today

· EPL6640

· Gold and Copper products located on the Kalahari Copper Belt

· Dordabis, 1 hr from Windhoek, 30 minutes from the International Airport and 4 hrs to Walvis Bay shipping port

· Mine licenses previously operated in copper

· Rail system runs through the EPL

· Nampower already exist

· Connected to main roads

· EPL6641

· Copper, located on the Kalahari Copper Belt

· Rehoboth, 1 hr from Windhoek, 2 hrs from airport and 4 hrs from Walvis Bay

· Rail system runs through the EPL

· Nampower and Namwater in place

· Connected to main roads

· EPL6717

· Cobalt, Copper and Iron products located on the Kaoko Copper Belt

· 8 hrs from Windhoek, 9 hrs from international airport and 6 hrs from Walvis Bay shipping port

· Complete infrastructure in existence

· Small scale mining present

Diamond and Heavy Mineral Sands Activity

The Company expects to receive very shortly the proceeds from the sales of the first sale of the Diamonds following the auction announced on 11 November 2020. In addition, reports indicate that the legal process for the acquisition of the Heavy Mineral Sands rights in South Africa is now making substantial progress.

Funding Update

As announced on 11 November 2020 the Company has been in advanced discussions with a major Namibian investor for a substantial equity investment in Kazera. This major investor has visited the Tantalum Valley Mine to understand the scale of the opportunity in the event that the Orange River Pipeline is commissioned. In addition, the potential investor believes that Kazera represents a strong candidate to consolidate further mineral licences across Namibia and across the border in South Africa as evidenced by the acquired diamond mine, the heavy mineral sands opportunity and the MoU referenced above.

Accordingly, the Company is in the process of agreeing terms with the investor for an initial equity investment reflective of the Company's net asset value which is in excess of its current share price. This investment is conditional upon finalization of contractual agreements and receipt of funds from the investor. A further announcement will be made in due course.

There can however be no guarantee that the investment referred to above will occur or that it will occur on the terms outlined.

Larry Johnson, Chief Executive Officer of Kazera Global commented:

"The Company has made significant progress in 2020 by securing new assets, options over further licences and a potential significant investor. We anticipate a very exciting 2021. We are incredibly fortunate to be sitting on such rich sources of minerals as well as very adept technical teams in all our assets who are now cross-pollinating ideas and further opportunities. While financing discussions are progressing well we continue to work hard to bring the discussions to a conclusion that will put the Company on a sound financial footing."

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No. 596/2014 ('MAR').

For further information on the Company, visit:  www. kazeraglobal .com

Kazera Global plc (c/o Camarco) Larry Johnson (CEO)	Tel: [phone]
finnCap (Nominated Adviser and Joint Broker) Christopher Raggett / Charlie Beeson (corporate finance)	Tel: [phone]
Camarco (PR) Gordon Poole / James Crothers / Hugo Liddy	Tel: [phone]

**ENDS**

 

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