Marula Mining PLC - $5 Million Lithium Prepayment Secured for Blesberg
Announcement provided by
Marula Mining PLC · MARU27/10/2022 07:00
Marula Mining PLC
("Marula'' or the "Company")
27 October 2022
Marula Proposes to Now Proceed to Acquire a 100% Interest in the Blesberg Project
Marula Mining (AQSE: MARU), an African focused mining investment company, is pleased to announce that, together with its mining and processing contractors, Southern Metal Processing Pty Limited ("SMP"), it has entered into an agreement with a South African based subsidiary of global commodity group Traxys SARL, under which the first
Highlights:
§
§ An initial tranche of
§
§ The
§ Production of the first 1,000t of high-grade lithium ore is expected to occur early in 2023
§ First sales are also expected by 14 January 2023
§ The second tranche of
§ SMP has successfully completed mineral recovery trials of the stockpiles and their management team are on site and are accelerating all regulatory approvals and site works in order to allow commencement of high-grade lithium ore production at Blesberg
The Company and SMP have entered into an agreement with Southern Jade Resources Pty Limited, a subsidiary of Traxys SARL, for the advance of
The lithium funding agreement, which is secured against the existing stockpiles at Blesberg, provides for the funding to be advanced in two tranches each of
The first tranche of
First sales are expected to be completed by 14 January 2023. A further
Increasing Blesberg Shareholding to 100%
The Board has elected to use approx.
The increase in its shareholding in Blesberg to 100% will be subject to receipt of all necessary regulatory and shareholder approvals in the
The decision to increase its shareholding in Blesberg to 100% comes at a time of record high lithium concentrate prices and demand.
Jason Brewer, Marula Mining PLC CEO said:
"Another milestone announcement, and one that all at Marula believe to be transformational for the Company.
"This funding reaffirms our belief in Blesberg, and provides third party validation to our battery metals strategy and confirms Blesberg as a high-grade lithium asset that is capable of being brought into production quickly as a lithium producer, with sales to an international commodity trading group.
"To be able to secure this funding to both increase our ownership in this exciting lithium battery metal project and fully fund it into production is a testament to the strength of the Blesberg Mine, the strong fundamentals of the lithium market and our strategy and focus on such advanced projects in
"To be close to being a new lithium producer, soon after refocusing the Company's strategy and to achieve this through a structured and non-dilutive financing against future lithium production is a major win and reward for shareholders.
"The funding allows for our contractor SMP to further accelerate the next phase of development work at Blesberg as we move closer to producing high-value, high-grade lithium ore and delivering cashflow for all our stakeholders. I look forward to sharing further updates in due course."
The Directors of Marula are responsible for the contents of this announcement. This announcement contains inside information for the purposes of
For enquiries contact:
Marula Mining PLC Jason Brewer, Chief Executive Officer
Faith Kinyanjui Mumbi Investor Relations |
Email : jason@marulamining.com
Email : info@marulamining.com
|
AQSE Corporate Adviser Cairn Financial Advisers LLP, Liam Murray / Ludovico Lazzaretti |
+44 (0)20 7213 0880 |
Broker OvalX, Tom Curran / Thomas Smith |
+44 (0) 20 7392 1568
|
Financial PR and IR BlytheRay Tim Blythe / Megan Ray / Said Izagaren |
+44 (0)20 7138 3204
|
Caution;
This announcement has been prepared for information purposes only.
Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect", ''will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.
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