Shuka Minerals Secures £2M Loan to Finalize Kabwe Zinc Mine Acquisition and Launch Exploration
Shuka Minerals Secures £2M Funding to Complete Kabwe Zinc Mine Acquisition and Advance Exploration in Zambia
Aim- and AltX-listed Shuka Minerals has entered into an agreement with its second-largest shareholder, Gathoni Muchai Investments (GMI), to increase its loan facility by £1.5 million.
This follows an initial £500,000 Tranche 1 loan extended in December 2024, bringing GMI’s total funding commitment to Shuka to £2 million.
The additional funding comes as Shuka advances toward completing its acquisition of Leopard Exploration and Mining (LEM), a Zambian mining company that owns the Kabwe zinc mine in central Zambia.
The increased loan facility will cover the remaining cash consideration owed to LEM vendors and also provide capital for initial exploration activities and general working capital.
Since the beginning of the year, Shuka and its legal and corporate advisors have been actively working to meet the remaining conditions required to finalize the acquisition, aiming for a revised completion date of June 30.
As part of the process, Shuka has conducted technical site visits in Zambia and held strategic meetings with key stakeholders in Lusaka and South Africa, including current and potential financiers.
In parallel, Shuka has executed an addendum and variation to the original share purchase agreement (SPA).
Under the revised terms, LEM vendors have agreed to accept the full $3 million share consideration through the issuance of 28.6 million new ordinary Shuka shares, with no deferred share component. As additional compensation, Shuka will issue the vendors two million warrants upon completion.
The company has confirmed that all conditions precedent for the acquisition have now been fulfilled.
“This is the most significant milestone in my tenure as CEO,” said Shuka CEO Richard Lloyd. “Our shareholders and stakeholders have been anticipating this moment, and I’m grateful to the entire team for their dedication, as well as to GMI for their continued support — now totaling over £1 million, with more to come through this extended loan.”
The expanded loan facility and updated SPA not only clear the path for closing the acquisition but also enable Shuka to accelerate geological and operational planning at the Kabwe site.
“With completion now in sight, the company can focus on unlocking the full geological, mining, and processing potential of this world-renowned asset,” Lloyd added.
