Shuka Minerals Secures Financing for Kabwe Zinc Mine Acquisition
Why we think this is good
The RNS announcement indicates that Shuka Minerals has secured the necessary financing to complete the acquisition of the Kabwe Zinc Mine in Zambia, which is a positive development for the company. The financing agreement with the company's second-largest shareholder reduces the funding risk, and the company has now satisfied all the conditions required to complete the acquisition. While the RNS does not provide specific financial details on the revenue opportunity or potential profitability, the company's plans to commence a 3-phase exploration and development program suggest a positive long-term outlook for the asset.
Key Points
- Shuka Minerals secures £2 million loan facility from its second-largest shareholder to fund the acquisition of Leopard Exploration and Mining Limited and the Kabwe Zinc Mine in Zambia
- All conditions precedent required to complete the acquisition have been satisfied, paving the way for the transaction to be completed
- Shuka Minerals plans to commence a 3-phase exploration and development program at the Kabwe Mine, with the aim of re-starting mining and processing operations
Summary
Shuka Minerals Plc has announced that it has secured a £2 million loan facility from its second-largest shareholder, Gathoni Muchai Investments Limited, to fund the cash consideration for the acquisition of Leopard Exploration and Mining Limited (LEM) and the Kabwe Zinc Mine, as well as initial exploration work and general working capital. All conditions precedent required to complete the acquisition have now been satisfied, and the company plans to commence a 3-phase exploration and development program at the Kabwe Mine, with the goal of re-commencing both open-pit and underground mining and processing operations.