Aim- and AltX-listed Shuka Minerals has strengthened its financial position through an expanded £1.5-million ($2.1 million) loan facility with major shareholder Gathoni Muchai Investments (GMI), bringing total funding from the investor to £2 million ($2.7 million) following an initial £500,000 ($687 000) tranche in December.
This capital injection supports Shuka's pending acquisition of Leopard Exploration and Mining (LEM) and its Kabwe zinc mine in central Zambia.
The funds will cover remaining acquisition payments, initial exploration at Kabwe, and general working capital needs.
Since signing the original Share Purchase Agreement in December, Shuka's team has diligently worked to meet all acquisition conditions before the revised June 30 completion date.
The company has conducted technical site visits in Zambia and held strategic meetings with stakeholders in Lusaka and South Africa, including current and potential financiers.
“This is the biggest milestone achieved in my short tenure as CEO and one which the market, shareholders and all stakeholders in Shuka have been waiting for,” said company chief executive Richard Lloyd.
“I must thank the entire team for their diligent efforts in getting us to this point, and the continued support by GMI who have now invested over £1 million ($1.37 million) in Shuka and are looking to increase this with the extended loan.”
Mathew Nyaungwa, Editor-In-Chief, Rough & Polished
