Shuka Minerals has confirmed it will receive the remaining funds to complete its acquisition of the Kabwe zinc mine in Zambia this month, finalising a deal that will give it full ownership of the central Zambian operation.
The company announced on December 1 that it has already settled the initial payment, securing a 22.2% stake in Leopard Exploration and Mining (LEM), which holds the Kabwe mine.
Further payments from financier Gathoni Muchai Investments (GMI), originally expected in November, are now anticipated in December.
These upcoming payments will increase Shuka’s interest in LEM to 49.9%. A final tranche of cash, shares, and warrants will then be used to acquire 100% of LEM, with the entire transaction scheduled for completion by December 31.
GMI had planned to pay the remaining $1.05 million in cash consideration to the LEM vendors by the end of November.
The investment firm now expects to settle this amount, along with an outstanding £450,000 ($594, 560) balance from an increased loan facility, this month.
"The company remains in regular contact with GMI regarding the status of funds due, and its expectation is that the balance of the £2-million ($2.6 million) GMI loan facility will be paid to the company by mid-December," Shuka Minerals stated.
Mathew Nyaungwa, Editor-In-Chief, Rough & Polished
