Marula Mining Plc - Update on Lithium Ore Sales & Offtake Agreement for Blesberg and Issue of Equity
Announcement provided byMarula Mining PLC · MARU
Marula Mining PLC
(“Marula’’ or the “Company”)
22 September 2023
Update on High-Grade Lithium Ore Sales and Offtake Agreement
for the Blesberg Lithium and Tantalum Mine and Issue of Equity
Marula Mining (AQSE: MARU) an African focused mining and development company, provides an update on the sale of high-grade lithium ore from the Blesberg Lithium and Tantalum Mine in
Further to the announcement on 31 August 2023, the Company announces that there has been a delay to the shipment of an initial 27.5 tonne of high-grade material processed from the historic stockpiles at Blesberg (“Initial Shipment”) to
The Company can also now confirm that, further to the announcement made on 31 August 2023, it has terminated the offtake agreement with Southern Jade Resources Pty Limited (“SJR”) for the first 2,000 tonnes of spodumene material produced from the stockpiles at Blesberg (the “Termination”).
As part of the Termination, Traxys Projects LP (“Traxys”), a wholly owned subsidiary of Traxys Europe SA, has agreed to be issued, in aggregate, 15,714,279 new ordinary shares in the Company at an issue price of
As a result of the Termination, the Company can now proceed to finalise a new long-term offtake agreement for the sale and purchase of spodumene and lithium products produced at Blesberg with new parties. Discussions on a long-term offtake agreement for production from Blesberg are continuing, with high-grade spodumene undergoing metallurgical testing and independent testing and sampling groups having recently been on site to procure further samples for analysis, as part of the requirements to finalise these agreements.
- The initial sale of 27.5 tonnes of high-grade 6% to 6.5% Li2O grade material will now be transported to
Cape Townand scheduled for shipment to Huangpu in China
- Payment for the Initial Shipment will be received by Marula’s South African subsidiary, South African Lithium and Tantalum Mining Pty Ltd via the Company’s
Dubaibased trading agent upon delivery and certification of the material in Cape Townand mark the commencement of revenue income from product sales for the Company from Blesberg
- Three independent testing and sampling groups, CI Group Limited, Alfred H Knight International Limited and China Certification & Inspection (Group) Co. Ltd have recently completed site visits to Blesberg on behalf of their clients and taken samples for assay and analyses in
South Africaand China
- Metallurgical process and flotation testwork on high-grade spodumene from Blesberg currently being undertaken as part of the requirements of finalising the long-term offtake agreement over production from the historic stockpiles at Blesberg
- Results from the metallurgical process and flotation testwork and assay and analysis work are expected to be completed by early October 2023
- Key commercial terms, including minimum product specifications and monthly quantities, selling terms, pricing, shipping, sampling and weight analysis, and payments terms all under negotiation and aimed to be completed shortly
- These offtake discussions are focused primarily for the sale of up to 50 tonnes per day of a +20mm high-grade lithium spodumene product that is anticipated to be produced from the re-processing of the historical stockpiles at Blesberg over the next 20 to 24 months and also for the production from the Company’s broader and longer-term development plans for Blesberg
- Termination of the previous offtake agreement with SJR now allows the Company to proceed and enter into these new long-term offtake agreements for the sale and purchase of spodumene and lithium products produced at Blesberg with new global trading groups in
Europeand other interested parties
- Under the terms of the Termination, the Company has agreed to issue Traxys, in aggregate, 15,714,279 new ordinary shares at an issue price of
14 penceper share in full satisfaction of the US$2.5 millionprepayment and deemed accrued interest of US$250,000
- 4,714,284 new ordinary shares are to be issued now and the balance issued on or before 29 September 2023
Issue of Shares to Traxys
The Company has issued in aggregate 4,714,284 new ordinary shares in the Company at a price of
Application has been made for the Traxys Shares to be admitted to trading on the Aquis Stock Exchange Growth Market on or around 27 September 2023 (“Admission") and will rank pari passu with the ordinary shares of the Company in issue.
Total Voting Rights
Following Admission, the Company's issued share capital will comprise 148,692,908 ordinary shares of 0.01p each, with each share carrying the right to one vote, therefore the total number of voting rights in the Company will be 148,692,908. This figure may be used by shareholders as the denominator for calculations by which they will determine if they are required to notify their interest in the Company, or a change to their interest in the Company, under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.
Jason Brewer, Marula Mining PLC CEO said:
“Over the past several months there has been interest from multiple Chinese groups in our lithium mining and processing operations at the Blesberg Lithium and Tantalum Mine and this initial shipment of high-grade spodumene allows us to deliver material into that market and it marks the commencement of albeit modest revenue from the sale of product from Blesberg.
“Whilst this agreement with a Chinese importer and exporter of metalliferous ores has the potential, in our view, to open up other opportunities in
“The negotiations with the global commodity trading groups for an offtake agreement are ongoing for all or part of the future production from Blesberg and the receipt shortly of the results from the metallurgical process and flotation testwork and assay and analysis work undertaken on high-grade spodumene material from Blesberg will allow us to move ahead and finalise these agreements.
“I look forward to updating our shareholders and investors on the progress of this initial shipment and on the finalisation of our long-term offtake agreement.”
The Directors of Marula are responsible for the contents of this announcement. This announcement contains inside information for the purposes of
About Marula Mining
Marula Mining (AQSE: MARU) is an African focused battery metals investment and exploration company and has interests in several high value mine projects in
Marula’s strategy is to identify and invest in advanced and high-value mining projects throughout East, Central and
Marula’s shares are traded on the AQUIS Stock Exchange (AQSE), Marula is exploring opportunities to admit its shares to trading on AIM, the market operated by the London Stock Exchange Group plc, Kenya’s Nairobi Securities Exchange and South Africa’s Johannesburg Stock Exchange.
For enquiries contact:
Marula Mining PLC
Chief Executive Officer
Faith Kinyanjui Mumbi
Email : email@example.com
Email : firstname.lastname@example.org
AQSE Corporate Adviser
Cairn Financial Advisers LLP,
Liam Murray / Ludovico Lazzaretti
+44 (0)20 7213 0880
Peterhouse Capital Limited,
+44 (0)20 7469 0930
Financial PR and IR
Tim Blythe / Megan Ray / Said Izagaren
+44 (0)20 7138 3204
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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