LONDON (ShareCast) - (Sharecast News) - Investment company Kazera Global updated the market on its operations on Thursday, confirming that Dennis Edmonds, the director responsible for its Alexander Bay activities, had been appointed as joint chief executive officer from 3 June.
The AIM-traded firm said the move was made given the importance of its South African activities, and the "considerable constraints" on travel caused by Covid-19.

Focus on securing a long-term financing solution for the company was ongoing, with two opportunities continuing to be progressed.

The board said the previously-disclosed investor remained interested in providing a package of €9.13m (£7.85m), which would fund the development of the Tantalite Valley mine, and the building of the Orange River pipeline.

A new opportunity with a second Namibian investor who, following completion of due diligence by both parties, had signed agreed initial terms to subscribe $11m (£7.75m) for 290,576,383 shares.

Kazera said either transaction would give a price of about 2.7p per share, and give the investor 29.34% of the firm's outstanding equity at the time of issue.

The company said operational activity was also continuing across its portfolio, with new end-users signalling interest in off-take from the Tantalite Valley mine.

Tantalum assay results had attracted the interest of two "large" end users, with negotiations now progressing for long-term supply.

DJ Drilling had completed operations focussed on repairing the road networks across the mine, resulting in the road systems now being back to full operational capability, ready to support the restart of operations.

Production at Kazera's Diamond Mine was also ongoing, with progress on permitting for the heavy mineral sands operations being made with the government.

Diamond drilling was continuing, with "meaningful" cash flow now being generated, as the South African government requested that the company begin distributing notices of its mining permit application to locals.

"Our focus remains on finding a financial solution for the creation of the Orange River pipeline, which, once completed, will support the restarting of production from our Tantalite Mine," said joint chief executive officer Larry Johnson.

"Whilst we await completion of one of these financing solutions, DJ Drilling and Kazera have turned our attention to making sure that the mine is ready to restart operations and that our road networks and equipment currently on site are ready."

Dennis Edmonds, the new joint CEO, added that recent progress in South Africa would shortly see Kazera's Diamond Mine becoming cash flow positive.

"The progress made for our Mining Permit is also very exciting. Both of these opportunities add significantly to the value of our company and from which we can look to deliver growth to shareholders."

At 1052 BST, shares in Kazera Global were up 8.13% at 1.6p.

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