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LONDON - Shuka Minerals Plc (AIM/AltX:SKA) announced Thursday that the completion of its proposed acquisition of Leopard Exploration and Mining Limited and the Kabwe Zinc Mine in Zambia has been delayed due to funding issues.
According to the company’s press release, Gathoni Muchai Investments Limited (GMI) informed Shuka on September 3 that the remittance of the $1.35 million needed to complete the transaction has been delayed due to "administrative matters and required regulatory clearances in Kenya." GMI expects these issues to be resolved within the next 10 business days.
The acquisition was previously announced on July 1, when Shuka reported that all conditions for the transaction had been satisfied. The LEM vendors remain supportive of completing the deal, which will proceed once the balance of cash consideration is paid and consideration shares and warrants are issued.
In a separate operational update, Shuka reported that 60,000 tonnes of "fines" are currently stockpiled at its Rukwa coal operation in Tanzania. The company hopes to achieve a sales price of $7-8 per tonne for this material. At Rukwa, pits have been dewatered and road and bridge repairs are being completed to allow production to resume.
Shuka stated that prior to receiving funds from anticipated sales of fines or additional funding from GMI, the company has sufficient funds which, along with continued creditor support, the board believes will meet its near-term requirements.
Shuka Minerals is listed on South Africa’s Alternative Exchange and London’s AIM market. The information was provided in a company press release issued Thursday.
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