Kazera Global shares soar as South African mining right granted
Kazera Global PLC on Wednesday said its wholly owned subsidiary Whale Head Minerals (Pty) Ltd had received approval for a 10-year mining right over Sea Concession 2A in the Northern Cape, South Africa.
Shares in the mining investment company, which focuses on early-stage assets in South Africa and Namibia, were up 22% at 1.92 pence per share late on Wednesday morning in London.
The mining right covers approximately 3,095 hectares and grants Whale Head Minerals the exclusive right to mine for heavy minerals, including garnet, monazite, zirconium, and rutile.
The approval from the South African Department of Mineral Resources and Energy follows Kazera's previously announced strategic partnership with South Africa AT Investments Pty Ltd, under which SAI will fund, develop and operate the company's heavy mineral sands business.
Following formal execution of the mining right, USD1.8 million will become payable to Whale Head Minerals by SAI. SAI will then expand its joint operations into the 2A concession.
Kazera said commercial production is targeted for the first quarter of 2027, and expects production to ramp up to at least 10,000 tonnes of concentrate per month by the second quarter.
The technical report identified an inferred mineral resource containing about 1.31 million tonnes of economic heavy minerals within an initial 42.86-hectare evaluation area, representing 1.42% of the 2A licence area.
Kazera said the remaining 98.58% of the concession had been identified as a geological target with potential to contain an additional 265.2 million tonnes of heavy mineral sands, although grades have yet to be determined.
Chief Executive Officer Richard Jennings said: "The approval of the mining right for 2A represents the most significant milestone in Kazera's history and marks the beginning of an extremely exciting new chapter for the company."
Jennings said a technical report published in August had reinforced Kazera's view that 2A could become a significant project for the company and the Northern Cape.
"Our ambition is to pursue the phased development of 2A into a large-scale, long-life industrial HMS operation, with the potential over time for substantially increased mining and processing capacity, delivering sustained economic benefits to the region and significant long-term value for all stakeholders.
"We now have the opportunity, the partner and the platform to build something of genuine scale and significance, and I am enormously excited about what that could mean for the future of Kazera and the Northern Cape."
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