Image credit: Kazera
The Aim-listed company said it will acquire a 90% stake in Deep Blue Minerals (DBM) for £600 000 in shares to be issued to Richard Jennings.
The balance of the shares in DBM will continue to be held by Tectonic and if shares in DBM need to be held by Black Economic Empowerment partners under South African law, Tectonic's interest in DBM will not be diluted.
Kazera said it will pursue near-term diamond production at DBM.
The mine had historical production grades of 10 carats per hundred tonnes, producing more than 10-million carats of gem grade diamonds since production commenced in 1928.
DBM has an inferred mineral resources of 208 000 carats at a grade of 6.0 carats per 100m².
Meanwhile, Kazera said it will also acquire a stake in WHM representing 90% of its current issued share capital or such percentage as is available once all necessary arrangements with Black Economic Empowerment partners under South African law are in place.
The work programme will be funded by diamond production revenue and will aim to produce over 6 000 tonnes a month at HMS, achieving an estimated gross revenue of $600,000 per month.
The company said it wants to acquire the projects as they both have simple work programmes required to start diamond production and are located on the border between South Africa and Namibia, within 450 km of its own Tantalite Valley Mine (TVM), in Namibia.
Kazera has also appointed a new executive director, with Dennis Edmonds to take responsibility for the diamond and HMS projects.
“With high-growth potential and near-term revenue opportunities, leveraging on our board expertise and flexibility, this investment is typical of the value we seek to create at Kazera,” said company chief executive Larry Johnson.
“…Kazera will be taking a majority interest in the joint venture and expects to enjoy near-term revenue generation, which will be a significant boost to our company and will facilitate not just growth at our South African diamond and HMS fields but also at TVM, where we continue to unearth value.”
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
