Shuka Minerals secures £1.5m loan from major shareholder

Published 30/09/2025, 09:02
Shuka Minerals secures £1.5m loan from major shareholder

LONDON - Shuka Minerals PLC (AIM/AltX:SKA) has secured a £1.5 million unsecured loan facility from major shareholder Gathoni Muchai Investments (GMI), bringing GMI’s total investment commitment to £2 million, according to a press release statement issued Tuesday.

The Tanzania and Zambia-focused mining company reported that the initial £500,000 tranche has been fully drawn, with additional drawdowns from the second tranche currently in process. GMI has indicated that the remaining transfer, originally expected by the end of September, will be delayed until October 15, 2025.

Funds will be allocated toward working capital, completing the acquisition of the Kabwe Lead Zinc Silver mine in Zambia, restarting operations at the Rukwa coal mine in Tanzania, and initial exploration at Kabwe.

The company also announced that AUO Commercial Brokerage LLC has extended its £2 million Convertible Loan Note availability by 12 months to March 2026, with the repayment or conversion date extended to March 2027.

Shuka reported that dewatering of pits at its Rukwa Coal Mine has been completed, with repairs to infrastructure and equipment underway. The company is in discussions regarding the sale of approximately 60,000 tonnes of stockpiled coal fines, estimated to be worth $7-8 per tonne. No coal sales were made during the first half of 2025.

A board restructuring is planned, with details expected to be announced at the upcoming Annual General Meeting.

Richard Lloyd, who joined as CEO six months ago, stated in the interim results that the company aims to establish itself as "a leading African focused mining and development company" once the Kabwe acquisition is completed.

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