Street Calls of the Week
LONDON - Marula Mining PLC (AQSE:MARU, A2X: MAR) announced Wednesday it will acquire the remaining 25% interest in Tanzania’s Kinusi Copper Mine through the purchase of Takela Mining Tanzania Limited.
The African-focused mining company, which currently holds a 75% commercial interest in the Kinusi Mine, will acquire 100% of Takela’s share capital for £2.5 million ($3.3 million), according to a company press release.
The consideration will be paid in three installments: £500,000 upon signing the share purchase agreement, £750,000 when the mine’s 10 Primary Mining Licences are consolidated into a single Mining Licence, and £1.25 million after commercial sales exceed 10,000 tonnes. Takela shareholders may elect to receive payment in cash or Marula shares at 10 pence per share.
Under Tanzania’s Mining State Participation Regulations 2022, the government will be entitled to a 16% free carried interest in the project once the mining license is granted. Takela shareholders will also receive a 1.5% net smelter royalty on gross sales from the mine.
The transaction follows recent site visits by Marula’s management team, who recommended equipment upgrades and facility expansions at the mine. Marula reported that two copper trial shipments of approximately 1,000 tonnes were completed earlier this quarter, and the company is finalizing a long-term copper offtake agreement with a global commodity trading group.
Stewart Mremi, Executive Director of Takela, will be appointed as General Manager of the Kinusi Mine, reporting to Christopher Attwood, Marula’s General Manager of Operations for East Africa.
The transaction constitutes a related party transaction as Edward Ruheni, Marula’s Director of Strategic Initiatives, is a Takela shareholder and a director of Marula’s Tanzanian subsidiary.
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