29 March 2023

Kazera Global plc ('Kazera' or 'the Company')

Interim Results

Kazera Global plc, the AIM-quoted investment company, announces its unaudited Interim Results for the six months ended 31 December 2022.

Highlights

·    Receipt of mining permit for Walviskop Heavy Mineral Sands (HMS) Project

·    Commenced initial production of HMS in December 2022

·    Diamond mine pan plant installed and commissioned at Alexander Bay Diamond Project

·    Ongoing disposal of African Tantalum (Pty) Ltd ('Aftan') for cash consideration of US$13m

·    Cash at 27 March 2023 of £1,258k

Dennis Edmonds, CEO of Kazera Global, said: "We remain committed to strengthening our position as a well-funded, commodity diverse, mining investment company, and developing early-stage assets towards meaningful cash flow and resource realisation. 

"Accordingly, towards the end of the period under review, we were delighted to announce the disposal of Aftan to Hebei Xinjian Construction ('Xinjian') for US$13m cash payable in several tranches to December 2023. Notably, Kazera is retaining the right to receive a debenture payment equivalent to 2.5% of gross sales of produced lithium and tantalum for the life of the Tantalite Valley Mine, and 100% ownership remains with us until Kazera is paid in full. In the interim, all costs are carried by Xinjian.

"This first realisation of returns from an investment is in line with our strategy and allows us to invest in our other assets without the need for additional capital raising, namely Whale Head Minerals (Pty) Ltd, which operates the Walviskop Heavy Mineral Sands Project ('Walviskop'), and Deep Blue Minerals (Pty) Ltd, which operates the Alexander Bay Diamond Project.

"Walviskop is a five-hectare beach sand deposit with a minimum 1.5Mt at 49.9% purity, predominantly ilmenite and garnet, which will be replenished by wave action; zircon and rutile are also present but have not been included in the modelling. Having placed an order for a screening plant to separate out the silica from the HMS and to create a saleable HMS concentrate, we expect the project to generate positive cashflow within the next six months and produce circa 6Kt HMS per month, achieving an estimated gross profit in excess of US$300,000 per month at current prices.

"Progress is also being made at the Alexander Bay Diamond Project, which is located within the 80km long Alexkor diamond fields and lying between two historic De Beers operations. With an estimated circa 2 million carats left in the tenement, mining is undertaken on a sub-contract basis from Alexkor, a government owned entity, which has the rights to all the diamonds in the area.  During the period, Kazera undertook the development of a new processing facility, which is now complete and capable of handling 70 tons per hour of raw material.

"Post period end, we were delighted to welcome a new strategic investor to our register, AMS, which has extensive experience in mining and infrastructure projects. Having agreed to acquire a 29.9% interest in the Company at a 53% premium to the price per Ordinary Share immediately prior to the suspension of Kazera's trading on AIM, AMS clearly recognises the value of your company.

"Looking ahead, with cash in hand, a supportive strategic investor in AMS, and clear path towards increasing scalable production at Walviskop providing us with a highly cash generative platform with which to grow the Company further, I remain highly optimistic for 2023 and beyond. 

"Finally, I would like to take this opportunity to thank the Board and management team for their continued hard work and support and look forward to providing regular updates on our progress as we focus on realising the potential of our investments and generating value for our shareholders."

Further payment from Xinjian

Since its announcement on 16 March 2023, the Company has received a further proof of payment of US$500k from Xinjian towards its purchase of Kazera's interest in Aftan, which is expected to be received imminently; the sale remains on track to complete in December 2023. This amount is not included in the calculation of the group's cash balance as stated above, of £1,258k.

Update re new strategic shareholder

Further to the Company's announcement on 16 March 2023, in which it was stated that, "The Company has been advised that the purchase will take place in a series of tranches during 2023, with all voting rights passing to the purchaser on payment of the first tranche.", the Company has since been advised that voting rights will pass to the purchaser on payment of the second tranche, not the first tranche as previously stated. Any further updates relating to the changes in shareholdings will be announced in accordance with the AIM Rules upon receipt of any notification in accordance with the Disclosure and Transparency Rules.

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