Shuka Minerals Nears Full Ownership of Kabwe Zinc Mine Following Funding Boost
Shuka Minerals Set to Complete Acquisition of Kabwe Zinc Mine as Final Funding Tranche Nears
AIM- and AltX-listed Shuka Minerals is expected to shortly receive £815,000 from investment banking group Gathoni Muchai Investments under an expanded loan agreement entered into in June last year.
The funding will enable Shuka to settle the remaining cash consideration for its acquisition of Leopard Exploration and Mining, a Zambian mining company that owns the Kabwe zinc mine.
Shuka began the acquisition process in November last year by settling an initial tranche of the purchase consideration, which secured an effective interest of 22.2% in Leopard Exploration and Mining.
Subsequent payments increased its stake to 49.9%, with the final tranche due this week expected to deliver full ownership of the company and the Kabwe zinc mine.
The transaction’s long-stop date was extended earlier this month to allow completion of the remaining funding tranches. The acquisition also faced delays due to regulatory approval processes, with the transaction originally expected to conclude in March last year.
The Kabwe mine, located in Zambia, was previously operated by Anglo American and Zambia Consolidated Copper Mines for several decades before being closed in 1994 due to unfavorable commodity price conditions.
ALSO READ :Shuka Minerals Delays Zambia Mine Acquisition After GMI Funding Fails to Arrive
During its operational life, Kabwe was regarded as one of the world’s highest-grade zinc and lead mining operations.
In preparation for taking full ownership, Shuka has engaged GeoQuest to review historical drilling data and conduct a geophysical survey across the licence area. This work is intended to support an accelerated development programme once the acquisition is fully completed.
