Kazera Global PLC Diamond production and general update (9633P)
February 23 2021 - 1:00AM
UK Regulatory
TIDMKZG
RNS Number : 9633P
Kazera Global PLC
23 February 2021
23 February 2021
Kazera Global plc
Diamond production and general update
Kazera Global plc ("Kazera Global", "Kazera" or "the Company"),
the AIM quoted investment company, provides the following
update.
Highlights:
-- Considerable progress achieved at the Company's Diamond asset
with just over 220ct being sorted in the last month, with a mining
grade of 10ct per 100 tons, in line with internal forecasts
-- New block opened at Diamond asset, which initial results
indicate an average mining grade of 20ct per 100 ton
-- The Company has entered into Joint Venture with a third party
who has the right to mine a further block in the area, on a revenue
sharing basis
-- Delays caused by the COVID pandemic in regards to the
issuance Company's Mining Permit and Prospecting Licence at the
Heavy Mineral Sands Project appear to have cleared
-- . Regulatory progress in respect of the proposed equity investment in the Company
Diamond Production
The Company is pleased to announce considerable progress in its
production of diamonds. Currently, just over 220ct have been sorted
in the last month, which the Company confidently expects will be
increased prior to the month end, with a mining grade of 10ct per
100 tons, which is in accordance with initial internal forecasts.
These diamonds are being held ready to participate in the next
diamond auction.
The Company has opened a new block, the initial results of which
indicate an average mining grade of 20ct per 100 ton. This new
block consists of two gravel layers, and the diamonds recovered to
date are from the top layer. The lower layer is covered by a
sandstone conglomerate, so is more difficult to access, but the
expectation is that the recovery rates from this layer will be in
excess of the 20ct per 100 ton expected to be achieved from the top
layer.
The Company has also entered into a joint venture with a third
party who has the right to mine a further block in the area.
Pursuant to the joint venture, the Company will undertake mining
operations over this block and share revenue with the block's
licence holder. The block size is 15400m(2) at an estimated grade
of 38.2 ct/100m(2) which give a total potential of over 5800
carats. The additional advantage of this block is that it lies
almost adjacent to the processing plant, so logistical issues are
minimized.
Heavy Mineral Sands Project
Delays caused by Covid and other issues are now resolved in
respect of the Company's Mining Permit and Prospecting Licence, and
both applications are now being actively processed by the legal
department of the Department of Minerals and Energy in South
Africa. The Company hopes to have further positive news to report
on this aspect shortly.
Financing Update
The Company is pleased to report that the process regarding
banking compliance for the proposed investment announced on 11
November, 1 December, and 21 December 2020 appears to be
progressing smoothly, with the Namibian Central Bank now apparently
having approved the transaction. The Company is now awaiting
completion by the commercial banks of their internal due diligence
processes.
The Covid 19 pandemic (along with strict adherence to global
banking standards) has meant that progress has been slow, but the
Company is now hopeful that clearances will be received shortly and
that the Company will finalise a substantial equity investment in
the Company at a value in excess of the current share price in the
coming weeks.
As announced on 21 December 2020 and in the absence of the
investment referred to above, the Company continues to have
sufficient cash resources to continue its operations until the end
of June 2021 and Giles Clarke and Nick Harrison are willing to
provide loan financing to the Company if necessary should the
investment above be further delayed, although it is not anticipated
that this will be necessary.
Dennis Edmonds, Kazera Executive Director managing the South
African projects, c ommented:
"It is very positive news to be able to report that diamond
production in South Africa is now approaching levels where the
diamond operation is self-funding and will soon be able to
contribute to the overall costs of the group. As soon as we are
able to start mining Heavy Mineral Sands we anticipate generating
substantial profits which will enable us to fund future
development, both in South Africa and Namibia."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No. 596/2014 ('MAR').
For further information on the Company, visit: www. kazeraglobal
.com
Kazera Global plc (c/o Camarco) Tel: +44 (0)203 757 4980
Larry Johnson (CEO)
finnCap (Nominated Adviser and Joint Broker) Tel: +44 (0)207 220 0500
Christopher Raggett / Charlie Beeson (corporate
finance)
Camarco (PR)
Gordon Poole / James Crothers / Hugo Liddy Tel: +44 (0)20 3781 8331
**ENDS**
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