Investment, Diamond, HMS and Tantalum Update

13 May 2021

Kazera Global plc

Investment progress, Diamond Production, HMS Licences and Tantalum Sample

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

Highlights:

Investment Update

The Board have now obtained further assurances that the investment of €9,130,000 referenced in previous RNS's will proceed in accordance with the agreed documentation. The expectation was that the funds would be received imminently following the completion of the banking due diligence. However, the investment in Kazera represents part of a package of broader investments in Namibia being made by the prospective investor. The size of the overall funding coming into the country has raised the need for visits to the larger projects by the underlying backers to cover in-country compliance.

Although this is a continued delay, Namibia is taking extra precautions based on past issues with foreign investment. The Board does not expect any issues for the Kazera element as the principal investor has twice visited the mine along with their geologist.  Enquiries undertaken by both the Board and the Company's independent advisers have all indicated that, despite the delays, the investment into the Company is still on track to complete on the terms as agreed in the signed Subscription Agreement between the two companies and previously outlined to the market. However, the Company can give no guarantees as to when the investment will complete and when the Company will receive the funds committed.

Despite the investment being delayed, based on their understanding of the situation from a Namibian perspective, the new mine contractor, DJ Drilling, continues to rebuild the road systems at Tantalum Valley that were damaged due to the extreme heavy rains experienced in Namibia. There is continued heavy equipment arriving on site as well as technical teams now busy with maintenance of the current plant. This work is being undertaken by DJ Drilling its sole risk and at no cost to Kazera in the expectation that the investment into the Company will be made.

Simultaneously, the Company has been approached by a separate high-profile Namibian investor who has expressed an interest in investing for a substantial amount of the equity of the Company. They have already conducted a successful site visit to Tantalum Valley and see the development of the Orange River Pipeline as being vital for increasing employment opportunities in the southern area of Namibia. Discussions are continuing although there can be no guarantee that these negotiations will conclude successfully or on what terms.

In the interim, the Company continues to be supported by its Board, Giles Clarke and Nick Harrison having not drawn salaries for the last 11 months and Larry Johnson and Dennis Edmonds not having drawn salaries for the last 6 months to ensure that all available cash is used to maximise returns from the diamond mining operation. In addition, Giles Clarke and Nick Harrison have agreed to lend to the Company such cash as is necessary to enable it to meet its commitments, should there be a shortfall. The provision of such loans would be a related party transaction pursuant to Rule 13 of the AIM Rules for Companies and would be treated as such upon their issuance.

It should also be noted that since the Company's Auditors signed off the Accounts at the end of March 2021 which were prepared on a going concern basis with a view that the Company would have sufficient funds for the next 12 months, the Company has received a further £118,000 by way of warrant exercises.

Diamond Production

Despite operational disruption in the area by illegal miners, the Company has been able to continue mining successfully. Diamond prices generally appear to be holding up well, but the demand for smaller diamonds in South Africa has fallen due to the inability of buyers to visit South Africa due to the challenges of Covid. Accordingly, the Company's focus has moved to areas containing larger stones where a higher price per carat can be achieved. The current production cycle has not yet ended, but it is anticipated that the number of carats to be auctioned will exceed that of the last auction. More importantly, the average stone size is expected to be larger, which will generate improved profitability.

Heavy Mineral Sands

It appears that the process for obtaining the licenses sought by the Company has now accelerated, and the Company has now received positive letters from the Department of Mines in respect of both applications. There are a number of criteria to be met, but the Company is confident that the process is once again moving forward and on track for successful completion in the not too distant future.

Tantalum Offtake Agreement

The Company has sent a sample from 740kg of Tantalum concentrate for analysis. This is as a result of an inquiry from a Chinese smelter who have issued a purchase order for the trial, with a draft contract under negotiation with a view to ultimately entering into an Offtake agreement for Tantalum.

Notice of AGM

The Company advises shareholders that its Notice of AGM has been posted to shareholders.

The Company will be holding the AGM at 9.00am on 3 June 2021, at Unit D, De Clare House, Sir Alfred Owen Way, Pontygwindy Industrial Estate, Caerphilly, Wales, CF83 3HU. Shareholders are advised the all Board members holding shares intend to vote in favour of all Resolutions.

Copies of the Annual Report and Accounts and the Notice of AGM are also available on the Company's website at https://kazeraglobal.com/.

Larry Johnson, Kazera Chief Executive Officer, commented: 

"The proposed investment of €9,130,000 will be transformational for the Company in terms of vastly accelerating the various opportunities that are open to it. It is as frustrating for the Board as it is for shareholders that the process has taken so long, but reality dictates that an investment of this size represents a major transaction in Namibia as a very young country, and that such a transaction will be subject to more scrutiny than would otherwise be the case. Our own investigations, as well as those of our external advisers have provided reassurance that the transaction is still proceeding and we will certainly not turn our backs on the deal simply because it is taking longer than we had hoped or expected.

The Company remains in a sound financial position due to revenues from diamond production, warrant exercises and the support of the Board.

Progress on the Heavy Mineral Sands front is promising and it is very encouraging to have such advanced interest from a prospective purchaser of Tantalum. Overall, I remain very excited that the Company is on the verge of being able to announce a number of positive developments."

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ('MAR'), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

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

**ENDS**