Shuka Minerals Reports New Funding Delay for Zambia’s Kabwe Mine and Leopard Exploration Acquisition
Shuka Minerals Faces Further Delay in Funding for Kabwe Mine and Leopard Exploration Acquisition
Aim- and AltX-listed Shuka Minerals has announced another delay in the release of funds required to finalize its planned acquisition of Leopard Exploration and Mining (LEM) and the Kabwe zinc mine in central Zambia.
In a statement issued on October 16, the company said that Gathoni Muchai Investments (GMI) had informed it of a further delay in remitting the funds tied to the increased loan agreement signed on June 30. GMI is reportedly finalizing alternative arrangements to expedite the payment process.
The funds are intended to cover the outstanding $1.35 million cash consideration owed to the LEM vendors.
However, Shuka Minerals confirmed that payment is now being processed and expects the funds to clear into its bank account next week. Once received, the company will move ahead with the completion of the LEM and Kabwe mine acquisition.
According to the company, finalizing the transaction will involve the payment of the remaining cash consideration, the issuance of consideration shares and additional warrants, and the formal transfer of LEM shares to Shuka Minerals.
“The LEM vendors remain supportive of progressing to completion of the acquisition,” the company stated.
Shuka reaffirmed its commitment to concluding the transaction under the non-dilutive and favorable terms of the existing GMI funding facility.
The completion of the acquisition is expected to strengthen Shuka’s presence in Zambia’s base metals sector, positioning the company for growth in zinc and related mineral production once operational control of the Kabwe project is secured.
