Street Calls of the Week
LONDON - Marula Mining PLC (AQSE:MARU, A2X: MAR) has executed loan documentation for a €6 million structured debt facility through its Kenyan subsidiary Muchai Mining Kenyan Limited, according to a press release statement issued Monday.
The debt facility, arranged with a US-based investment banking group, has an initial one-year term that can be extended for up to five years. The loan accrues interest at the European Central Bank marginal lending facility rate plus 1% and is structured against a standby letter of credit.
Redstone Partners Limited lead-arranged the facility, which is being administered by Weben Global Partners (Pty) Limited. Munyaradzi Murape, a non-executive director of Marula, is a director and major shareholder of both companies. Under the arrangement, Weben Global Partners will receive a quarterly fee of 0.1% of the debt facility.
The African-focused mining company also reported it has entered into an agreement with major shareholder Gathoni Muchai Investments Limited for an unsecured, interest-free, non-convertible loan of £1 million to meet working capital requirements and development costs.
Additionally, Marula disclosed it is in negotiations with Mauritius-incorporated investment funds backed by a Middle East sovereign wealth fund regarding potential investments in up to five of its battery and critical metals projects in East and Southern Africa.
Letters of intent have been received for two of Marula’s East African mining projects and for a potential new mine acquisition. The company stated that investments between $7.5 million and $10 million for each project have been proposed, with the process expected to be completed by October 31, 2025.
Marula Mining focuses on battery metals projects across Africa, including operations in South Africa, Botswana, Kenya, and Tanzania.
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