Environmental Authorisation for Blesberg
Marula Mining PLC
("Marula'' or the "Company")
27 March 2025
Environmental Authorisation for Blesberg Lithium and Tantalum Mine
Issue of Equity
Marula Mining PLC (AQSE: MARU A2X: MAR) an African focused mining and development company, is pleased to announce that its South African subsidiary Southern African Lithium and Tantalum Mining (Pty) Limited ("SALT") has received a request for financial provision pursuant to the terms of the National Environmental Management Act from the South African Department of Mineral Resources and Energy ("DMRE") for the issuance of the Environmental Authorisation for a 10-year Mining Right ("Mining Right") for its Blesberg Lithium and Tantalum Mine ("Blesberg" or the "Project").
The Environmental Authorisation will be issued upon the Company (i) depositing a ZAR11,860,902 (approx. £510,000) cash guarantee with the DMRE as a financial provision for environmental rehabilitation as set out under the Environmental Management Act (Act 107 of 1998) which is required by 31 March 2025. The Mining Right will then be issued upon (i) submitting an updated Social Labour Plan ("SLP") as required in terms of Regulation 23 of the Mineral and Petroleum Resources Development Act (Act 28 of 2002); and (ii) finalising a Broad-Based Black Economic Empowerment transaction ("BB-BEE Agreement") in accordance with Section 100(2)(a) of the MPRDA and requirements of Mining Charter III, which will include host communities and qualifying employees (non-transferable carried interest) and broad-based black economic empowerment entrepreneurs. The Company aims to have the SLP lodged and BB-BEE Agreement finalised by 31 May 2025.
To meet the approx. £510,000 cash guarantee with the DMRE, the Company will utilise existing cash resources and its existing approved facilities with AUO Commercial Brokerage LLC ("AUO"), as announced on 31 January 2023, to drawdown £500,000 (the "Drawdown"). It is anticipated that the funds, advanced through CMC Markets UK Plc, trading as CMC CapX, will be received in the Company's bank account in the United Kingdom on 31 March 2025 and 13,333,334 new ordinary shares will be issued at a price of 3.75 pence per share ("Rehabilitation Bond Shares") in consideration of the Drawdown and to meet the financial provision for environmental rehabilitation.
Highlights:
· Mining Right Environmental Authorisation for Blesberg to be granted by the DMRE
· Mining Right will be valid for a period of 10 years
· Mining Right will extend over the full 1,051 hectares ("ha") Blesberg license area, replacing the 2-year Mining Permit that extended over a 5 ha area as announced in August 2024
· The Mining Right will be major milestone for Blesberg and its management and operations team in the Northern Cape Province of South Africa
· Once the Mining Right is issued the Company's subsidiary SALT can expand its planned operations at Blesberg beyond just re-processing of historical stockpiles to include the development of a large-scale and conventional open pit mining operation that also includes more than just the original focus on the lithium, tantalum and feldspar mineralisation in the pegmatite
· Subject to approval of the Mining Right, the Company intends to appoint a mining contractor to commence the open pit mining at Blesberg as announced in December 2024
· Subject to the approval of the Mining Right, the Company will progress the previously announced Joint Venture with a Chinese battery manufacturer in respect to the commissioning, financing, and operation of a lithium acid leaching plant to produce an intermediate lithium product for use in the manufacture of lithium batteries and other high value lithium products
· The Company applied for and received an acceptance for a Prospecting Right on the same area covered by the Mining Right application, which includes additional high-value minerals that were not previously included under the Blesberg Mining Permit and original Prospecting Right
· These high-value minerals were identified as part of the Company's exploration and diamond drilling activities in 2023 and 2024 and provided initial data to support the Company's application for these additional minerals
· With the Environmental Authorisation for the Mining Right to be issued upon payment of the financial provision for environmental rehabilitation, the Company has now instructed its Independent Competent Person to finalise and formally sign off on the Blesberg Independent Technical Competent Persons Report ("CPR") and Blesberg JORC Compliant Resources Report ("JORC Report")
· The forecast economic impact of these high-value minerals on Blesberg is considered by the Company to be significant
· The finalisation of the CPR and JORC Report have been delayed whilst additional sample analysis of 1,273 samples is required and can proceed given the Environmental Authorisation of the Mining Right and inclusion of these high-value minerals
· The CPR and JORC Report are expected to be issued in Q2 2025.
· The Mining Right application area is contiguous to and immediately south of the Northern Cape Lithium and Tungsten (Pty) Limited ("NCLT") Project Prospecting Right and also borders the New Blesberg Extension Prospecting Right Acceptance to the east, west and south. As such, the Company has the opportunity to seek to extend the Mining Right over these adjoining licence areas, which will facilitate the planned development and mining of these adjoining areas
Jason Brewer, CEO of Marula Mining, said:
"The anticipated approval of a 10-year Mining Right for the Blesberg Lithium and Tantalum Mine is a very significant and major milestone for Marula and its shareholders.
"Full credit and appreciation to our General Manager, Henk van Zyl and his team for the progress to date. To have taken Blesberg to this point in less than 12 months, since the application was accepted by the DMRE is a major accomplishment. The issuing of a new Mining Right on Blesberg is also very significant for the mining industry in the region.
"The request for financial provision to have the Environmental Authorisation for the Mining Right to be issued also requires us to finalise the Social Labour Plan and BEE partnership for Blesberg. We are also required to fund just over a £500,000 cash environmental rehabilitation bond which will utilise our existing approved equity facilities to do this.
"Marula can now focus its activities on the larger scale and higher value mining and processing operations at Blesberg and in strengthening our operational footprint and reinforcing our commitment to sustainable mining practices, local economic development, and environmental responsibility.
"We look forward to progressing with our plans and delivering long-term value to our shareholders and stakeholders.
Admission
Application has been made for the Rehabilitation Bond Shares to be admitted to trading on the Aquis Stock Exchange Growth Market on or around 1 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 281,405,678 ordinary shares of 0.01p each, with each share carrying the right to one vote, therefore the total number of voting rights in the Company will be 281,405,678. 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.
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 and 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 |
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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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