Kazera Global PLC Diamond production and general update (9633P)

TIDMKZG

RNS Number : 9633P

Kazera Global PLC

23 February 2021

23 February 2021

Kazera Global plc

Diamond production and general update

Kazera Global plc ("Kazera Global", "Kazera" or "the Company"), the AIM quoted investment company, provides the following update.

Highlights:

-- Considerable progress achieved at the Company's Diamond asset with just over 220ct being sorted in the last month, with a mining grade of 10ct per 100 tons, in line with internal forecasts

-- New block opened at Diamond asset, which initial results indicate an average mining grade of 20ct per 100 ton

-- The Company has entered into Joint Venture with a third party who has the right to mine a further block in the area, on a revenue sharing basis

-- Delays caused by the COVID pandemic in regards to the issuance Company's Mining Permit and Prospecting Licence at the Heavy Mineral Sands Project appear to have cleared

   --      . Regulatory progress in respect of the proposed equity investment in the Company 

Diamond Production

The Company is pleased to announce considerable progress in its production of diamonds. Currently, just over 220ct have been sorted in the last month, which the Company confidently expects will be increased prior to the month end, with a mining grade of 10ct per 100 tons, which is in accordance with initial internal forecasts. These diamonds are being held ready to participate in the next diamond auction.

The Company has opened a new block, the initial results of which indicate an average mining grade of 20ct per 100 ton. This new block consists of two gravel layers, and the diamonds recovered to date are from the top layer. The lower layer is covered by a sandstone conglomerate, so is more difficult to access, but the expectation is that the recovery rates from this layer will be in excess of the 20ct per 100 ton expected to be achieved from the top layer.

The Company has also entered into a joint venture with a third party who has the right to mine a further block in the area. Pursuant to the joint venture, the Company will undertake mining operations over this block and share revenue with the block's licence holder. The block size is 15400m(2) at an estimated grade of 38.2 ct/100m(2) which give a total potential of over 5800 carats. The additional advantage of this block is that it lies almost adjacent to the processing plant, so logistical issues are minimized.

Heavy Mineral Sands Project

Delays caused by Covid and other issues are now resolved in respect of the Company's Mining Permit and Prospecting Licence, and both applications are now being actively processed by the legal department of the Department of Minerals and Energy in South Africa. The Company hopes to have further positive news to report on this aspect shortly.

Financing Update

The Company is pleased to report that the process regarding banking compliance for the proposed investment announced on 11 November, 1 December, and 21 December 2020 appears to be progressing smoothly, with the Namibian Central Bank now apparently having approved the transaction. The Company is now awaiting completion by the commercial banks of their internal due diligence processes.

The Covid 19 pandemic (along with strict adherence to global banking standards) has meant that progress has been slow, but the Company is now hopeful that clearances will be received shortly and that the Company will finalise a substantial equity investment in the Company at a value in excess of the current share price in the coming weeks.

As announced on 21 December 2020 and in the absence of the investment referred to above, the Company continues to have sufficient cash resources to continue its operations until the end of June 2021 and Giles Clarke and Nick Harrison are willing to provide loan financing to the Company if necessary should the investment above be further delayed, although it is not anticipated that this will be necessary.

Dennis Edmonds, Kazera Executive Director managing the South African projects, c ommented:

"It is very positive news to be able to report that diamond production in South Africa is now approaching levels where the diamond operation is self-funding and will soon be able to contribute to the overall costs of the group. As soon as we are able to start mining Heavy Mineral Sands we anticipate generating substantial profits which will enable us to fund future development, both in South Africa and Namibia."

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No. 596/2014 ('MAR').

For further information on the Company, visit: www. kazeraglobal .com

 
 Kazera Global plc (c/o Camarco)                     Tel: [phone] 
  Larry Johnson (CEO) 
 
   finnCap (Nominated Adviser and Joint Broker)        Tel: [phone] 
   Christopher Raggett / Charlie Beeson (corporate 
   finance) 
 
   Camarco (PR) 
   Gordon Poole / James Crothers / Hugo Liddy         Tel: [phone] 
 

**ENDS**

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February 23, 2021 02:00 ET (07:00 GMT)