First Copper Sales Agreement Signed for Kinusi
12 February 2025
Marula Mining PLC
("Marula Mining'' or the "Company")
First Copper Sales Agreement Signed for Kinusi Copper Mine
Marula Mining (AQSE: MARU A2X: MARU), an African-focused mining and development company, is pleased to confirm that it has signed its first copper sales agreement ("Sales Agreement") with a European-based global commodity trading group in respect of the high-grade copper concentrates produced from the Kinusi Copper Mine ("Kinusi") in the Mpwapwa District of Tanzania's Dodoma Region.
The Sales Agreement is for an initial delivery of 250 tonnes ("t") out of the total approximately 1,000t of planned high-grade copper concentrate trial sales shipments to be made to up to five European-based global commodity trading groups that the Company is currently in negotiations with. The Sales Agreement is based on a minimum 20% copper concentrate grade, with delivery to a bonded warehouse in Dar es Salaam in Tanzania. The commercial terms and sales price for the copper concentrate sales are considered standard for an agreement of this nature and are linked to the benchmark London Metal Exchange ("LME") copper price with additional payments made for any gold and silver content in the concentrates. A provisional payment of 90% of the value of the initial 250t sale will be made on receipt of check assay, weight and moisture results at the Dar es Salaam port warehouse and the balance on delivery of the copper concentrates to the final port of destination.
The first delivery of copper concentrates under the Sales Agreement are expected to be completed by 7 March 2025.
Subject to the successful delivery of this initial sale to the European-based global commodity trading group, the Sales Agreement also includes further monthly deliveries to them of up to 1,000t on the same key commercial terms. These deliveries represent approximately 50% of the planned monthly production of 2,000t of copper concentrates from the Phase 1, gravity concentrate, coarse jigging and fines dewatering circuit anticipated to be commissioned later this quarter at Kinusi.
The Sales Agreement is one of four such agreements that the Company and its local partner Takela Mining Tanzania Limited ("Takela") are currently finalising for copper ore trial shipments and sales of up to an initial 1,000t to these European-based global commodity trading groups. These negotiations are at an advanced stage given the recent copper assay results of mined, processed and already bagged saleable copper concentrates at Kinusi that confirmed average copper grades in excess of 20%. Negotiations of the key commercial terms of these additional sale agreements and longer-term offtake arrangements are being completed by the Company's Executive Management with the assistance of the Company's recently appointed Commodity Sales and Marketing consultant and are anticipated to be signed in due course.
The first sales revenue from these initial high-grade copper concentrate sales are due to be received this quarter and will continue thereafter. Further updates on the receipt of these sales revenues will be provided in due course.
Jason Brewer, CEO of Marula Mining, said:
"Securing our first copper ore sales agreement with a leading global commodity trading group marks a major milestone for Marula Mining and its partners, Takela Mining and the Kinusi Copper Mine. We are looking forward to concluding these initial sales and also in securing additional sale agreements with other trading groups shortly.
"We are excited about the potential for further expansion and remain committed to developing Kinusi into a key contributor to our growing portfolio of battery and strategic metals projects."
The Directors of Marula Mining 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 and Kruisrivier Cobalt Mine, 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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