Kazera Global PLC Diamond sales, deadline and financing update (2545J)

TIDMKZG

RNS Number : 2545J

Kazera Global PLC

21 December 2020

21 December 2020

Kazera Global plc

Diamond sales, extension to financial reporting deadline and financing update

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

Diamond Sales

The Company is pleased to announce that it has now sold its first batch of diamonds, showing that mining is focused in good locations, that all equipment, including the new scalper/screener built by the Company, is operating effectively and that sales are starting to take place as anticipated.

This first "proof of concept" batch consisted of 52 carats of diamonds and the Company anticipates that the number of carats delivered will increase substantially with subsequent batches.

The Company's focus in South Africa is now on increasing diamond production, processing a further 850 tons of gravel, of which 147 tons have been through final processing, yielding 42 carats of diamonds. Results so far indicate that mining continues to be aimed at the correct areas with good diamond content.

The Company now intend on reaching a total of 1,500 tons of processed gravel for final processing prior to the shut off for the January auction.

Heavy Mineral Sands Project

In light of the delays experienced to date in getting the Mining Permit and the Prospecting Licence issued, the Company and Tectonic have agreed to extend the completion date for the acquisition of a 90% stake in Whale Head Minerals (Pty) Limited to 31 March 2021. All applications have now been successfully logged and are currently awaiting legal sign off.

Extension to Financial Reporting Deadline

Further to guidance provided by AIM Regulation in "Inside AIM" on 26 March 2020, the Company has been granted an extension of up to three months for the reporting and filing of its financial results for the year ended 30 June 2020 such that it will publish these results as soon as possible, but by no later than 31 March 2021.

Due to the current restrictions on travel imposed in both Namibia and the UK as a result of the Covid-19 pandemic, the Company's auditors are unable to complete their audits within the normal timeframe.

Financing Update

The Company is able to report that it anticipates reporting a loss before tax of approximately GBP912,000 and a cash position of approximately GBP425,000 as at 30 June 2020. The Company currently has sufficient cash resources to enable it to continue trading until the end of June 2021. During which time, the Directors are very confident that they will have secured additional financing sufficient for both the Company's working capital needs and capital requirements in respect of its Tantalite Mine.

As announced on both 11 November 2020 and 1 December 2020, the Company has been in advanced negotiations with a major Namibian investor. The Company is pleased to report that it has agreed commercial terms with such investor for a substantial equity investment at a value in excess of the current share price. The Directors believe that the investment can be finalised in the coming weeks subject to receipt of banking consents in Namibia.

Two of the Company's directors, Giles Clarke and Nick Harrison, have agreed, if necessary, to provide loan facilities to the Company. These loans would be interest free and would be redeemable within a maximum of 12 months.

Accordingly, the Directors look forward to 2021 with an enhanced portfolio of investments and solid fundraising prospects.

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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December 21, 2020 02:00 ET (07:00 GMT)