Update re Kabwe transaction and Operational update
Kabwe acquisition completion delayed by GMI funding administrative matters; Rukwa operations progressing towards production restart.
- Cash consideration due to LEM vendors $1.35m
- Stockpiled fines at Rukwa 60,000 tonnes
- Target sales price for fines USD7-8 per tonne
- Target production rate at Rukwa 4,000-5,000 tpcm
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As announced on 1 July 2025, the conditions to completion of the Acquisition sale and purchase agreement have been satisfied, following which the Company issued a notice to draw down funds pursuant to the increased loan, entered into on 30 June 2025, with Gathoni Muchai Investments Limited ("GMI"), to be used to satisfy the $1.35m balance of cash consideration due to the LEM vendors and additionally to contribute towards general working capital. GMI, on 3 September 2025, informed the Company that the remittance of the funds has been delayed due to administrative matters and required regulatory clearances in Kenya. While GMI expect to resolve these matters, they are exploring alternate means to expedite payment, which GMI expect to be resolved within the next 10 business days. GMI have further confirmed to the Company their financial capacity to meet their obligations under the increased GMI loan facility.
The LEM vendors remain supportive of progressing to completion of the Acquisition, which will occur following payment to the LEM vendors of the balance of cash consideration and issue of the consideration shares and further warrants (as detailed in the 1 July 2025 announcement), and the transfer of LEM shares to the Company.
On 30 June 2025 the Company updated that 60,000 tonnes of "fines" were stockpiled on surface at the Company's Rukwa operation in Tanzania, and the Company hoped to achieve a sales price of USD7-8 per tonne for this material, which will generate valuable cashflow. The Company remains in discussions with potential purchasers for product and will provide an update in due course. At Rukwa, the pits are now dewatered and road & bridge repairs are being completed to allow commencement of production. Subject to securing funding for the purchase, or lease, of new equipment at Rukwa, and testing and restarting the wash plant, sales will re- commence, targeting a ramp up to production rate to 4,000-5,000 tpcm.
Prior to the receipt of funds from anticipated sales of fines, or additional funding provided under the GMI increased loan, the Company has sufficient funds which, along with the continued support of creditors, the Board believes is sufficient for its near term requirements.
A further announcement will be made in due course.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.