Agreement to Acquire Lithium Brine Interests
Marula Mining PLC
("Marula'' or the "Company")
25 April 2025
Agreement to Acquire Strategic Lithium Brine Interests in Botswana
Marula Mining PLC (AQSE: MARU A2X: MAR) an African focused mining and development company, is pleased to announce that it has signed a binding terms sheet (the "Agreement") with Botswanan exploration company Geowise Resources (Pty) Limited ("Geowise"), to acquire up to a 70% interest in the Boteti Lithium Brines Project (the "Boteti Project") located in the Makgadikgadi Desert Salt Pan in the Boteti District of the Republic of Botswana.
The Boteti Project comprises three granted prospecting licences, 165/2022, 166/2022 and 167/2022, that extend over 188,140 hectares within the Makgadikgadi Desert Salt Pan, an area recognised for its extensive brine resources and significant mineral potential, including concentrations of lithium and potash, among other critical minerals.
Under the terms of the Agreement, Marula will issue 250,000 new ordinary shares in the Company at a price of 4.0 pence per ordinary share to Geowise to acquire an initial 50% interest in the Boteti Project. A further issue of new ordinary shares to the value of £10,000 will be issued on completion of the Company's final due diligence which is expected to be completed by 30 April 2025. In addition, Marula will further fund 100% of the exploration, feasibility studies and mine development work necessary to advance the Boleti Project through to production which will be completed through the SPV. On completion of a successful feasibility study, Marula will issue new ordinary shares to the value of £250,000 and have the option to increase its interest to 70% through the issue new ordinary shares valued at £100,000.
Highlights:
· Agreement signed to acquire up to a 70% interest in the Boteti Project
· The Boteti Project extends over an area of 188,140 hectares in Botswana's Makgadikgadi Desert Salt Pan
· The Makgadikgadi Desert Salt Pan has been identified as being highly prospective for various critical minerals, including lithium and has been designated the 'Makgadikgadi Lithium Zone' by Botswana's Department of Mines
· Historical and current exploration in the Makgadikgadi Desert Salt Pan has focused on lithium brine deposits, which are accumulations of saline groundwater that are enriched in dissolved lithium that are formed in closed-basin systems
· The production of lithium from lithium brine deposits is dominated by major projects in Chile and Argentina where lithium salts can be extracted from brines pumped to the surface and evaporated in a succession of ponds, until further processed to produce a lithium carbonate product
· Developments in the extraction of lithium from brines sources using Direct Lithium Extraction methods has demonstrated the opportunity to accelerate the extraction process and also reduce the environmental impact of the traditional evaporation ponds
· The acquisition of up to a 70% interest in the Boteti Project is in line with the Company's battery and critical metals strategy, focused on projects in Southern and East Africa
· The Boteti Project adds to the Company's portfolio of lithium projects in Southern Africa and importantly diversifies it from the hard-rock lithium spodumene project at the Blesberg Lithium and Tantalum Mine
· The Company's technical team has already completed a positive initial legal, financial and technical due diligence review and is set to complete its outstanding due diligence work by 30 April 2025
· Geowise and the Company are currently incorporating a new special purchase vehicle ("SPV") in Botswana through which the respective interests in the Boteti Project will be held and the three granted prospecting licences are to be transferred
· The Company anticipates work to commence on site later in Q2 2025 and over the next 12 months this will include sediment pan mapping, brine sampling and analyses, airborne geophysics and magnetic surveys, acoustic televiewer survey, vertical and horizontal loop electromagnetics, exploration drilling and core analyses and process mineralogy and process development studies.
Admission
Application has been made for the 250,000 new ordinary shares to be admitted to trading on the Aquis Stock Exchange AQSE Growth Market and A2X Markets on or around 30 April 2025 ("Admission") and will rank pari passu with the ordinary shares of the Company in issue.
Total Voting Rights
Following Admission, the Company's issued share capital will comprise 281,655,678 ordinary shares of 0.01 pence each, with each share carrying the right to one vote, therefore the total number of voting rights in the Company will be 281,655,678. This figure may be used by shareholders as the denominator for calculations by which they will determine if they are required to notify their interest in the Company, or a change to their interest in the Company, under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.
Jason Brewer, CEO of Marula Mining, said:
"This Agreement marks another significant step in Marula Mining's strategy to expand our footprint in Africa's rapidly growing lithium sector. Botswana is emerging as a key destination for lithium exploration, and securing up to a 70% interest in these highly prospective assets strengthens our position in the market.
We are confident that, through our investment in exploration and development, we can unlock substantial value from this project.
The Boteti Lithium Brines Project adds to our portfolio of battery and critical metals projects and is in a country that has a very strong history of mining success stories.
We look forward to working closely with Geowise and progressing the project towards a development decision.
Further updates on this transaction will be communicated in due course."
The Directors of Marula are responsible for the contents of this announcement. This announcement contains inside information for the purposes of UK Market Abuse Regulation.
About Marula Mining
Marula Mining (AQSE: MARU A2X: MAR) is an African focused battery metals investment and exploration company and has interests in several high value mining operations and mine development projects in Africa: the Blesberg Lithium and Tantalum Mine, Northern Cape Lithium and Tungsten Project, all in South Africa; the Larisoro Manganese Mine and Kilifi Manganese Processing Operation both in Kenya; the Kinusi Copper Mine, the Nyorinyori Graphite Project and the NyoriGreen Graphite Project all in Tanzania. As we advance operations at these battery metals focused projects, Marula will continue to build and expand its interests in other high-quality projects in Africa.
Marula's strategy is to identify and invest in advanced and high-value mining projects throughout East, Central and Southern Africa that the Directors believe would deliver returns for its shareholders. The Board and management team aims to establish Marula as a socially and environmentally responsible, sustainable, and profitable producer of critical metals and commodities that are of increasingly strategic importance to modern technologies and the global economy. Marula's shares are traded on AQUIS Stock Exchange (AQSE) in London and A2X Markets in South Africa. Marula is exploring opportunities to admit its shares to trading on Kenya's Nairobi Securities Exchange and South Africa's Johannesburg Stock Exchange.
For enquiries contact:
|
Marula Mining PLC Jason Brewer, Chief Executive Officer
Faith Kinyanjui Mumbi Investor Relations |
Email : jason@marulamining.com
Email : info@marulamining.com
|
|
AQSE Corporate Adviser Cairn Financial Advisers LLP, Liam Murray / Ludovico Lazzaretti |
+44 (0)20 7213 0880 |
|
A2X Advisor AcaciaCap Advisors Proprietary Limited Michelle Krastanov |
+27 (11) 480 8500 |
Caution:
Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect", ''will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.
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