LONDON (ShareCast) - (Sharecast News) - Kazera Global announced the first sale of 10,000 metric tonnes of heavy mineral sands by its subsidiary Whale Head Minerals on Tuesday, marking a key milestone in the company's commercialisation strategy.
The AIM-traded firm said the sale, made to Fujax South Africa under an existing offtake agreement, exceeded the initially expected shipment volume of 6,000 tonnes.

Under the terms of the agreement, Whale Head would receive 80% of the anticipated final sales price, net of costs, upon invoicing, with the balance due within five days of final sale.

Fujax was responsible for all downstream logistics, including transport, processing, assaying, marketing and associated costs such as taxes and duties.

Kazera said the sale underscored the operational progress at Whale Head Minerals and its growing contribution to group performance.

It said the two parties would continue to collaborate on stockpile development and grade improvement, with the aim of enhancing future sales volumes and margins.

"This is a landmark and transformative moment for Kazera Global - Whale Head Minerals is incredibly fortunate to have such a rich mineral resource that can generate cash with minimal processing," said chief executive officer Dennis Edmonds.

"The sale of this initial 10,000 tonnes, which exceeds our initial expectations, demonstrates the strength of the operational capabilities of our investee company.

"The focus now is on improving margins by cutting transport costs and improving the purity of the end product, as well as selling diamonds."

Edmonds said the company also eagerly awaited the granting of a mining right over the much bigger area encompassed by 2A.

"The board is very proud of the Whale Head Minerals team in South Africa who have worked tirelessly to get us to this stage, and grateful to Fujax and the numerous people in South Africa who have provided support, as well as all of our shareholders who have been with us throughout this journey."

At 1114 GMT, shares in Kazera Global were up 10.55% at 1.52p.

Reporting by Josh White for Sharecast.com.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE