Shuka Minerals Moves Closer to Full Acquisition of Zambia’s Kabwe Zinc Mine
Shuka Minerals to Receive Remaining Funds for Kabwe Zinc Mine and LEM Acquisition in December
Aim- and AltX-listed Shuka Minerals has confirmed that it expects to receive the remaining funds needed to finalize its acquisition of Leopard Exploration and Mining (LEM) and the Kabwe zinc mine in central Zambia this month—slightly later than originally planned.
In a December 1 update, the company said it had already completed the initial payment tranche, securing a 22.2% stake in LEM and the Kabwe project. However, subsequent payments from Gathoni Muchai Investments (GMI) are now anticipated in December instead of November.
Under the expanded loan agreement signed on June 30, these payments will increase Shuka’s ownership in LEM to 49.9%. A final tranche—consisting of the balance of cash, shares, and warrant consideration—will bring Shuka to full 100% ownership of LEM. All tranches are expected to be completed by December 31.
GMI had initially planned to pay the outstanding $1.05 million cash consideration to LEM’s vendors by the end of November. It now plans to settle that amount, along with the remaining £450,000 under the increased loan facility, within December.
“The company remains in regular contact with GMI regarding the status of funds due, and its expectation is that the balance of the £2-million GMI loan facility will be paid by mid-December,” Shuka Minerals said.
