Shuka Minerals Advances Kabwe Zinc Mine Acquisition and Redevelopment

AIM-listed Shuka Minerals is making significant progress toward acquiring and redeveloping the Kabwe zinc mine in Zambia, with a newly appointed board overseeing the process.

In a corporate and operational update on February 14, CEO Richard Lloyd reaffirmed the company’s commitment to unlocking Kabwe’s full potential.

He noted strong support from potential funders, with various financing options under consideration. However, he emphasized the need for well-structured budgeting and timelines to ensure the project’s success.

Shuka’s planned acquisition of Zambian mining and exploration company Leopard Exploration and Mining (LEM) follows a conditional share purchase agreement (SPA) signed in December 2024 with LEM’s shareholders.

Since early 2025, the company and its legal and corporate advisors have been working to finalize outstanding conditions for the Kabwe acquisition.

Completion is targeted for March 2025, with preparatory work already underway to accelerate redevelopment post-acquisition.

Shuka’s executive team and key consultants have conducted technical site visits in Zambia, as well as stakeholder meetings in Lusaka and South Africa, engaging with existing and potential financiers.

Over the past three weeks, company representatives have also visited Southern and East Africa, holding discussions on both the Kabwe acquisition and Shuka’s existing Rukwa coal mining operations in Tanzania.

A successful site visit to Kabwe allowed CEO Richard Lloyd to observe high-grade zinc mineralization from outcropping deposits, alongside local small-scale zinc and base metal mining operations.

Samples were collected and sent to ALS Zambia’s laboratory in Lusaka for grade and metallurgical testing, with results expected later this quarter.

Key stakeholders have responded positively to the Kabwe acquisition and its redevelopment potential.

Shuka’s team is actively reviewing historical geological, geophysical, and mine development data to refine its strategy for Kabwe. The company is finalizing the appointment of GeoQuest, a Zambia-based firm, to assist with site activities and project planning.

Additionally, new project budgets and implementation schedules are being finalized for board approval later this quarter.

Shuka is carefully managing its working capital and creditor obligations while progressing financing discussions with AUO Commercial Brokerage and other financial partners across Europe and Africa.

The company is securing funding to:

• Meet cash consideration owed to LEM shareholders under the SPA, ensuring the Kabwe acquisition is completed.
• Support exploration and development at Kabwe post-acquisition.

As part of its funding strategy, Shuka has an existing agreement with Gathoni Muchai Investments (GMI), its second-largest shareholder, for an interest-free, non-convertible £500,000 loan. To date, £250,000 has been drawn, with further drawdowns planned this quarter.

Beyond Kabwe, Shuka continues to work closely with its local management team at the Rukwa coal mine in Tanzania. Discussions with potential operational partners for Rukwa are also underway.

With stakeholder support, strategic financing, and site preparations accelerating, Shuka Minerals is positioning itself to complete the Kabwe acquisition and advance redevelopment, reinforcing its presence in Zambia’s mining sector.