Shuka Minerals extends Kabwe acquisition completion date while it awaits last approval
Aim-listed Shuka Minerals has received all but one of the regulatory approvals required to complete the acquisition of Leopard Exploration and Mining, and thereby the Kabwe zinc mine, in Zambia.
The company in December signed a conditional share purchase agreement to acquire 100% of Leopard’s share capital and a share- and cash-based transaction.
Completion of the acquisition was due to occur by March 13, subject to all the necessary regulatory approvals and Shuka successfully completing a debt or equity capital raise.
The outstanding approval relates to the Competition and Consumer Protection Commission in Zambia, which Shuka now expects to receive during the second quarter.
The partners of the transaction have agreed to extend the completion date of the acquisition to June 11.
The Shuka board remains confident that it will secure the necessary capital to complete the deal, with funding discussions progressing well with a number of finance groups in London and Africa.
The Kabwe mine was previously operated by Anglo American and Zambia Consolidated Copper Mines for a total 88 years before its closure in 1994 owing to commodity price factors.
It was ranked as one of the world’s highest-grade zinc and lead mining operations.
Meanwhile, Shuka has appointed Zambia-based GeoQuest as an independent geological consultant to start an initial phase of exploration activity at Kabwe.
In anticipation of completing the Leopard and Kabwe acquisition, and to ensure no delay in progressing a work programme, Shuka has tasked GeoQuest to complete a review of the site’s historical resource drilling and exploration work, as well as to conduct a geophysical survey on the licence area.
Additionally, GeoQuest will also review the assay results from a sampling programme undertaken by Shuka in February. The samples were submitted to a laboratory in Zambia for grade and metallurgical testing, with the results due later this month.