UK-listed junior miner Marula Mining has agreed to buy control of Kenya’s Larisoro Manganese Mine following an initial term sheet agreement with the mine’s current owner Gems and Industrial Minerals (GIM).
Jason Brewer, CEO of Marula Mining said the investment in Larisoro was the firm’s first in Kenya ahead of a listing on the Nairobi Securities Exchange. “This is an important milestone for us as we continue to establish Marula Mining to be an African-focused mining and development company in the battery metals sector,” he said.
The Nairobi listing will also combine with a dual listing in Johannesburg. Brewer said last year his company intended to mine lithium in the Northern Cape.
On signing technical and commercial agreements, Marula will pay GIM £200,000 in shares or cash. A further £300,000 will be payable on completion of an initial exploration program and a final payment of £750,000 will become payable on achieving 50,000 tons of commercial sales of manganese ore.
Marula will have a 60% stake in Larisoro with an option to go to 70% through a further payment to GIM of £1,250,000 in cash or shares.
Marula Mining will also buy $1.5m worth of mobile mining equipment for Larisoro and intends to invest a further $1.75m to fund the initial exploration.
The current investment will double production of saleable manganese ore at Larisoro to about 10,000 tons per month. Marula Mining said it was in “advanced discussions” regarding a possible offtake agreement with a European based commodity trading group.
