Shuka Minerals Nears Completion of Kabwe Zinc Mine Acquisition in Zambia

AIM-listed Shuka Minerals has secured nearly all regulatory approvals for its acquisition of Leopard Exploration and Mining, which includes Zambia’s Kabwe zinc mine.

Only one approval remains outstanding from Zambia’s Competition and Consumer Protection Commission, which Shuka expects to receive in the second quarter.

In December, the company signed a conditional share purchase agreement to acquire 100% of Leopard’s share capital through a cash-and-share transaction.

The acquisition was initially set to close by March 13, pending regulatory approvals and the successful completion of a debt or equity capital raise. However, transaction partners have agreed to extend the completion deadline to June 11.

Shuka’s board remains confident in securing the necessary funding, with financing discussions ongoing with multiple investors in London and Africa.

The Kabwe mine, previously operated by Anglo American and Zambia Consolidated Copper Mines, was one of the world’s highest-grade zinc and lead operations before its closure in 1994 due to commodity price fluctuations.

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To advance exploration at Kabwe, Shuka has appointed Zambia-based GeoQuest as an independent geological consultant. GeoQuest has been tasked with reviewing historical resource drilling and exploration data, conducting a geophysical survey, and analyzing assay results from a sampling program Shuka conducted in February.

The samples were sent to a Zambian laboratory for grade and metallurgical testing, with results expected later this month.

Shuka remains committed to finalizing the acquisition and accelerating development at Kabwe once all approvals are secured.