LONDON (ShareCast) - (Sharecast News) - Shuka Minerals said on Thursday that completion of its planned acquisition of Leopard Exploration and Mining, owner of the Kabwe zinc mine in Zambia, had been delayed as funding from a key backer awaited regulatory clearance in Kenya.
The AIM-traded company said Gathoni Muchai Investments, which agreed to provide an increased loan facility to cover the $1.35m balance of cash consideration, informed Shuka that the remittance had been held up by administrative matters.

GMI was reportedly exploring alternative means to expedite payment and expects resolution within 10 business days.

Shuka noted that the vendors of Leopard remained supportive of the deal, which would complete once payment and the transfer of shares are finalised.

In Tanzania, Shuka said operations at its Rukwa site were progressing, with 60,000 tonnes of stockpiled fines expected to generate sales of $7 to $8 per tonne.

Discussions with potential buyers were ongoing.

The company said it had completed dewatering of pits and road and bridge repairs to enable production restart, which was contingent on securing funding for new equipment and commissioning of the wash plant.

Shuka said it was targeting a ramp-up to between 4,000 and 5,000 tonnes per month once sales recommence.

The company said it had sufficient funds, alongside continued support from creditors, to meet near-term requirements while awaiting proceeds from fines sales or additional funding under the GMI facility.

At 1035 BST, shares in Shuka Minerals were down 7.81% at 2.95p.

Reporting by Josh White for Sharecast.com.

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