WHM Strategic Production Sharing Agreement
Kazera Global plc has entered into a binding 50/50 Production Sharing Agreement with Rare Earth Minerals International for its Walviskop Heavy Mineral Sands project, effective June 1, 2026. This agreement sees Rare Earth Minerals International deploying processing plant and infrastructure valued at over £1 million, with no upfront capital cost to Kazera, and contributing ZAR600,000 (approximately £27,000) monthly towards operational costs, significantly reducing Kazera's working capital burden. The partnership aims to accelerate production growth, targeting 10,000 tonnes of processed HMS per month by the end of Q3 2026, with a longer-term objective of 20,000 tonnes per month, and enhancing concentrate grade to a minimum 40% TiO₂ to improve saleability and pricing.
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Kazera Global plc (AIM: KZG), the AIM-quoted investment company, is pleased to announce that its wholly owned subsidiary, Whale Head Minerals (Pty) Ltd ("WHM"), has entered into a binding Production Sharing Agreement ("PSA") with South African mineral processing group Rare Earth Minerals International (Pty) Ltd ("REMI") in relation to the Walviskop Heavy Mineral Sands ("HMS ") project in the Northern Cape, South Africa (the "Project").
The PSA, which takes effect from 1 June 2026 and has an initial term of 12 months, is expected to materially enhance operational capability, accelerate production growth and significantly reduce the working capital burden associated with scaling operations at Walviskop.
Highlights
| • | Binding 50/50 production sharing agreement with REMI covering mining and HMS production at the Walviskop HMS Project |
| • | In exchange for 50 per cent. of HMS revenue generated from the Project, REMI is deploying significant processing plant and associated infrastructure at Walviskop, with an estimated replacement value in excess of £1 million, with no upfront capital cost to Kazera, creating a fully aligned production partnership |
| • | REMI to make a monthly operational funding contribution of ZAR600,000 (circa £27,000) toward Project costs, materially reducing Kazera's near-term working capital requirements and supporting accelerated production growth, subject to periodic reconciliation arrangements |
| • | Clear near-term operational milestones, with installation, commissioning and optimisation activities well advanced |
| • | Targeted enhancement in HMS concentrate grade, with work already underway aimed at improving product quality toward approximately a minimum c. 40% TiO₂ which the Company believes will materially improve product saleability and realised pricing |
| • | Progressive production ramp-up targeted, with the Company expecting approximately 10,000 tonnes of processed HMS per month by the end of Q3 2026, subject to commissioning, optimisation and normal operating conditions |
| • | Longer-term production objective towards 20,000 tonnes per month of HMS concentrate output, subject to final optimisation, feedstock availability and operating conditions |
| • | Potential for Walviskop to become rapidly cash generative, with profitability expected to grow as production volumes and concentrate quality improve |
| • | Agreement expected to provide a strong operational platform ahead of the anticipated grant of the 2A Mining Right, which the Company believes could materially increase future mining volumes and operational scale |
Richard Jennings, Interim CEO of Kazera, commented: "This agreement represents a potentially pivotal moment for Kazera and, in my view, materially changes the trajectory of our Walviskop project.
"Following an intensive period of technical work and preparation at site, we now have a fully aligned partner bringing significant processing capability, operational expertise and funding support to Walviskop. Importantly, REMI's economics are directly aligned with ours and driven by production success.
"Beyond materially reducing the working capital burden associated with scaling production, this partnership provides a clear pathway toward increasing both production volumes and concentrate quality over the coming weeks and months. We believe this has the potential to materially transform the economics of Walviskop and strengthen its position within the heavy mineral sands market.
"While there remains much hard work ahead, we believe Walviskop now has a strong platform from which to grow into a meaningful and profitable operation. Our attention also increasingly turns toward the anticipated award of the 2A Mining Right, which we expect to result in a further major step forward for the business. In parallel, we are well advanced in the completion of a Competent Persons' Report ("CPR") for the 2A area, which we believe will help illustrate the scale and longer-term potential of the 2A opportunity. We expect to be in a position to share the findings of the CPR in late June."
A spokesperson for REMI commented: "The REMI team is both proud and enthused to partner with Kazera Global at the Whale Head Minerals' heavy mineral sands project.
"REMI's operational proficiency and HMS experience will complement Whale Head's existing site capability as we progress the shared objective of developing these valuable early-stage assets towards meaningful resource realisation.
"Our principals - Lewellyn Rampersad, Gershwyn Chetty, Dr Peter Fernando and Trevor Chetty - look forward to working alongside the WHM team as we advance the Project over the coming months. We would also like to thank Richard Jennings and Johan Truter for the opportunity to be part of this exciting next phase of development."
Strategic Partnership to Accelerate Walviskop Development
Under the terms of the PSA, REMI is deploying a substantial mineral processing plant at Walviskop, including spiral concentration infrastructure and associated processing equipment, whilst contributing to mining and operational costs. The processing infrastructure being deployed by REMI has an estimated replacement value in excess of £1 million and is expected to materially strengthen the operational capability of the Walviskop project.
WHM and REMI will share production revenues and costs on a 50/50 basis, creating a fully aligned operational partnership focused on increasing production volumes, enhancing product quality and improving overall project economics. REMI will also make a monthly operational contribution toward site costs, materially reducing the near-term funding burden on Kazera during the scale-up phase.
The Agreement follows recent operational progress at Walviskop, including further technical understanding of the Company's HMS product and its positioning within the global heavy mineral sands market.
Operational Timeline and Processing Enhancement
Installation, commissioning and optimisation activities under the PSA are already underway and the Company anticipates an initial increase in production volumes over the coming weeks as plant commissioning and operational integration are completed.
Subject to normal operational factors, the Company expects production to reach approximately 10,000 tonnes of processed HMS per month by the end of Q3 2026, with a longer-term objective of achieving approximately 20,000 tonnes per month of HMS concentrate output.
Alongside increased production volumes, REMI will work with WHM to optimise processing aimed at enhancing the grade of HMS concentrate produced at Walviskop toward a minimum 40% TiO2 grade. The Company believes that achieving higher concentrate grades will materially improve both product saleability and realised pricing in end markets, supporting stronger project economics.
The Company expects to provide a further operational update regarding commissioning progress and initial production performance in due course.
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