TIDMKZG
RNS Number : 5049I
Kazera Global PLC
19 April 2022
19 April 2022
Kazera Global plc
("Kazera" or the "Company")
Diamond sales and operational update
Kazera Global plc, the AIM quoted investment company, is pleased
to announce that diamond sales of $236,547 for the December
2021/January 2022 cycle were achieved from production at Alexander
Bay, South Africa. Following a trial period of operating the
Muisvlak plant in conjunction with MV5, management have now decided
to hire a Pan Plant which will give the Company total independence
from the Muisvlak plant and will give it a much greater level of
control over the processing of its diamonds.
In Namibia, Kazera has upgraded the tantalum processing plant to
ensure that the plant can meet the Company's export expectations.
As a result, the Company expects successful production to be
imminent.
Finally, in expectation of the grant of the Heavy Mineral Sands
permit, the Company's subsidiary, Whale Head Minerals ('WHM'), has
appointed Dr Gil Mahlati and Dr Dempsey Naidoo, two highly
respected South African businessmen to its Board.
Highlights
-- Gross diamond sales from December 2021/January 2022 cycle equate to US$236,547.71.
-- A further 160 carats remain to be sold.
-- The 13 carat stone sold for US$45,938.
-- Future diamond operations are now totally independent of the Muisvlak plant.
-- 30% of future sales income is no longer payable to MV5.
-- Management have concluded that the Tantalite Valley
processing plant will not meet production targets in its current
form. The plant is being upgraded and further updates are expected
shortly.
-- The appointments of Dr Gil Mahlati and Dr Dempsey Naidoo to
the Board of Whale Head Minerals in anticipation of the grant of
the Mining Permit will greatly increase the profile of WHM locally,
as well as adding a wealth of expertise in infrastructure projects
and Heavy Mineral Sands ('HMS').
Details
Diamond Project
Gross diamond sales for the December 2021/January 2022 sales
cycle totaled US$ 236,547.71. From this amount Alexkor are entitled
to 30% as the owner of the mine and MV5 are entitled to a further
30% in terms of the Joint Venture entered into with them. A further
160 carats remain to be sold. It was expected that the Company's
previous issues with processing diamonds through the Muisvlak plant
would be resolved by the JV with MV5 referred to in previous
announcements. Despite record numbers of carats being produced,
various political factors together with the fact that MV5 received
30% of diamond sales made the project unsustainable. To resolve
this, the Company has now agreed to work with a third party who
will provide a Pan Plant, which will not only eliminate the need
for the Company to use the Muisvlak plant at all, but will also
reduce processing costs. Payment for the use of the Pan Plant will
only be made as diamonds are sold. The Company has also instituted
legal action against MV5 for payment of monies due.
In a further major development, the Company has been working
with another third party to trial a new X Ray sorting process for
diamonds. This process is now in the final stages of approval and
will give Deep Blue Minerals even greater control over its diamond
production.
Tantalum Project
In Namibia, the works undertaken by the Company's wholly owned
subsidiary, African Tantalum, in conjunction with DJ Drilling, has
led to the entire refurbishment and redesign of the plant. From
test production it is clear that the plant is in an appreciably
better condition than it has been since 2017. However, to further
ensure that it is capable of handling the tonnage now projected for
2022 and beyond, a classifier has been added to the process and the
current spirals are being refurbished. It is expected that on
completion of these the plant will have both the capacity and a
level of redundancy to enable it to meet projected demand. Water
usage remains comfortably within manageable levels.
Heavy Mineral Sands Project
As mentioned in the Company's announcement of 15 February 2022,
the Company is awaiting a ruling from the Minister of Mines in
South Africa on the one appeal received against the application for
its HMS Mining Permit. An advocate has been appointed to examine
the application and to make a recommendation to the Minister. In
the interim, Alexkor, whose CEO at the time lodged the appeal, have
appointed a new CEO, who took office on 1 April 2022. It is hoped
that he will reconsider the (to the Company and its professional
advisers) illogical and unsubstantiated appeal by his predecessor.
In the interim, and in anticipation of the Mining Permit being
granted imminently, the Company is delighted to announce the
appointment to the Board of Whale Head Minerals, Dr Gil Mahlati as
Chairman and of Dr Dempsey Naidoo as a non-executive director
(further details in Appendix (1) below).
Dennis Edmonds, Kazera Chief Executive Officer, commented:
"In South Africa, we are greatly encouraged by the words of the
President of South Africa, Mr Cyril Ramaphosa, who is actively
encouraging foreign investment into South Africa. We are also
hopeful that the new Board of Alexkor will bring a fresh and
entrepreneurial approach to the region.
Within the scope of our own operations, the last couple of
months have been frustrating for the Company, however, we are very
proud of becoming largely independent of the ability of outside
forces to influence our diamond production. It is also very
encouraging to see the developments in Namibia which will give us a
facility capable of meeting all our requirements in the very near
future.
On behalf of the Board, I am very excited to welcome Gil and
Dempsey to the Board of WHM. I have no doubt that their wisdom,
experience and local knowledge will be huge factor in making WHM
the success it deserves to be, both financially, but also in terms
of the creation of jobs and opportunities in a community which is
desperately short of both "
Appendix (1)
Dr Mahlati
Dr Mahlati trained in both South Africa and the UK as a liver
transplant surgeon. Since ceasing to practice as a surgeon he has
focused on healthcare ventures throughout Africa. He has acted as a
senior executive of a number of healthcare related businesses,
including Vuwa Investments and Enaleni Pharmaceuticals (now
Amabhubesi Healthcare). He is also currently the Chairman of
African Financial Group, which focuses on investments and advisory
services.
Dr Naidoo
Dr Naidoo is a highly qualified engineer, having worked at Anglo
American and De Beers (where he was part of the Management Team at
Namaqua Sands Mine). He is also the founder of the PD Naidoo Group,
the largest multi-disciplinary engineering consultancy in the newly
democratic South Africa. He has served on numerous boards in both
the public and private sectors in South Africa and
internationally.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No. 596/2014 ('MAR').
For further information on the Company, visit: www. kazeraglobal
.com
Kazera Global plc (c/o Camarco) Tel: +44 (0)203 757 4980
Dennis Edmonds (CEO)
finnCap (Nominated Adviser and Joint Broker) Tel: +44 (0)207 220 0500
Christopher Raggett / Tim Harper (Corporate
Finance)
Tel: +44 (0) 207 220 9797
Peterhouse Capital Limited (Joint Broker)
Duncan Vasey and Lucy Williams (Corporate
Broker)
Camarco (PR)
James Crothers / Hugo Liddy/Gordon Poole Tel: +44 (0)20 3781 8331
**ENDS**
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END
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