Update of financing for Kabwe transaction
Shuka Minerals Plc is awaiting $1.35 million from Gathoni Muchai Investments Limited (GMI) for the Kabwe Zinc Mine acquisition, with GMI citing administrative delays but expressing confidence payments will commence this week. The LEM vendors are still supportive of the acquisition's completion, which hinges on the cash consideration balance, share issuance, warrant issuance, and LEM share transfer. Shuka also has 60,000 tonnes of stockpiled "fines" at its Rukwa operation in Tanzania, hoping for a sales price of $7 to $8 per tonne. Pending the receipt of funds from GMI and the anticipated sales of fines, Shuka Minerals reports limited cash resources but believes they are sufficient for near-term needs with creditor support.
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Despite written confirmation provided to the Company by Gathoni Muchai Investments Limited ("GMI"), funds to satisfy the $1.35m balance of cash consideration due to the LEM vendors have yet to be received by the Company. On 27 October 2025, GMI advised that payments would be proceeding by 31 October 2025 and, most recently, GMI has advised the Company that administrative issues had prevented the payments from proceeding last week, although GMI is now confident that payments to Shuka will commence this week. The Company is in regular contact with GMI regarding the status of funds due.
On 4 September 2025, the Company updated that 60,000 tonnes of "fines" were stockpiled on surface at the Company's Rukwa operation in Tanzania, and that the Company hoped to achieve a sales price of $7 to $8 per tonne for this material, which will generate valuable cashflow. The Company remains in discussions with potential purchasers to maximise the proceeds of the intended sales of fines, and will provide an update in due course.
Prior to the receipt of funds from anticipated sales of fines, and pending receipt of funds due from GMI, the Company has limited cash resources. With the support of creditors, the Board believes these funds are sufficient for its near-term requirements.
A further announcement will be made in due course.
Richard Lloyd, CEO of Shuka, commented: "It is disappointing to be reporting a further delay, though we have been assured by GMI that funding to allow the completion on Kabwe will soon be provided. The Company remains committed to finalising the acquisition utilising the non-dilutive and favourable terms available under the GMI facility, rather than alternative sources of funding that may be available to the Company. We are grateful for the patience of Shuka shareholders and of the LEM vendors."
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.