Sale and Purchase Agreement Signed for Kilifi
5 August 2024
Marula Mining PLC
("Marula'' or the "Company")
Share Sale and Purchase Agreement Signed for the Kilifi Manganese Processing Plant
Marula Mining PLC (AQSE: MARU A2X: MARU) an African-focused mining and development company, is pleased to announce that the Company and its wholly owned subsidiary, Muchai Mining Kenya Limited ("MMK") have signed a share sale and purchase agreement ("Agreement") in relation to the acquisition of an 80% shareholding in Agarwal Metals and Ores Limited ("AMO"), a Kenyan incorporated mineral processing company.
As announced on 11 July 2024, AMO is the registered owner of the Kilifi Manganese Processing Plant (the "Kilifi Plant") located approximately 60 kilometres ("km") from the Port of Mombasa in the Tezo Area, Kilifi County in Kenya. The Kilifi Plant is located on 1.31 hectares of freehold land, which is comprised of a conventional manganese processing plant that includes a vibrating feeder, tommel scrubber, belt conveyor, jig separator, vibrating screen, pumps, fine jaw crusher, magnetic separator and run-of-mine and final manganese product stockpiling areas.
The Agreement replaces the binding terms sheet announced 11 July 2024, and under the financial settlement terms of the Agreement, the Company will make arrangements to transfer the final cash payment of £2,000,000 from advances due from AUO Commercial Brokerage LLC under its existing funding arrangements to AMO, and the issue of £500,000 worth of new ordinary shares at an issue price of 10 pence per share, being 5,000,000 new ordinary shares ("Final Consideration Shares") to the major shareholder of AMO.
Service and maintenance work is underway at the Kilifi Plant ahead of planned recommencement of manganese ore processing operations. Run-of-mine ore feed to the Kilifi Plant, at a minimum grade of 20% manganese has been recently secured under a Manganese ore supply agreement ("Ore Agreement") as announced on 1 August 2024. The Ore Agreement between MMK and Kitmin Holdings Limited for the supply and delivery of a minimum of 10,000 tonnes per month of manganese ore will allow MMK to operate the Kilifi Plant at full capacity.
Admission
Application has been made for the Final Consideration Shares to be admitted to trading on the Aquis Stock Exchange AQSE Growth Market and A2X Markets on or around 12 August 2024 ("Admission") and will rank pari passu with the ordinary shares of the Company in issue. The Company's ordinary shares remain suspended from trading.
Total Voting Rights
Following Admission, the Company's issued share capital will comprise 199,723,329 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 199,723,329. 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: MARU) 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, Korridor Lithium 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, the NyoriGreen Graphite Project and the Bagamoyo Graphite Project all in Tanzania and the Nkombwa Hill Project in Zambia. 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:
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Marula Mining PLC Jason Brewer, Chief Executive Officer
Faith Kinyanjui Mumbi Investor Relations |
Email : jason@marulamining.com
Email : info@marulamining.com
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AQSE Corporate Adviser Cairn Financial Advisers LLP, Liam Murray / Ludovico Lazzaretti |
+44 (0)20 7213 0880 |
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Broker Peterhouse Capital Limited, |
+44 (0)20 7469 0930
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Financial PR and IR BlytheRay Tim Blythe / Megan Ray / Said Izagaren |
+44 (0)20 7138 3204
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A2X Advisor AcaciaCap Advisors Proprietary Limited Michelle Krastanov |
+27114808500 |
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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