Europa Metals Ltd. has agreed heads of terms to buy Marula Africa Mining Holdings, a move that would give the London-listed miner control of producing and near-producing assets across East and Southern Africa.
Under the proposed deal, Europa would issue nine new shares for every Marula Africa share, effectively taking over the company’s parent, Marula Mining, which trades on London’s Aquis Exchange and South Africa’s A2X Markets.
The transaction would be classed as a reverse takeover under London’s AIM rules, meaning Europa’s shares will remain suspended until the deal is completed and the company is readmitted to trading.
Marula Africa’s portfolio spans projects in Kenya, Tanzania, Burundi and South Africa, focused on metals used in batteries and renewable energy technologies.
These include the Blesberg lithium and tantalum mine in South Africa, the Kilifi manganese processing plant in Kenya and the Kinusi copper mine in Tanzania. Several of these sites are already producing and exporting ore, with further shipments expected this quarter.
The deal would also bring Europa a pipeline of earlier-stage exploration projects, including graphite, lithium, manganese and rare earth elements, all of which are key materials for electric vehicles and renewable energy storage systems.
The companies said the transaction was expected to be “cashflow generative”, giving Europa immediate exposure to operating mines and near-term production.
Marula’s costs of pursuing the deal will be covered by the company itself, and Europa will also participate in a bridge funding facility being extended to Marula. Should the takeover fail to proceed,
Europa said it would consider cancelling its AIM listing, though its shares would remain listed on the Johannesburg Stock Exchange.
The proposed acquisition remains subject to due diligence, shareholder approval, the signing of formal legal documents and the raising of further funds. Europa said investor interest in the potential fundraising had already been strong.
Jason Brewer, Marula’s chief executive, leads a management team with experience across African mining and development. The company has existing supply agreements with regional and international buyers, providing near-term revenue opportunities.
Myles Campion, Europa’s executive chairman and acting chief executive, said: “Europa has been searching for cashflow generative assets with scalability and the potential for strong resource growth. In Marula we will be partnering with a group that is accomplishing these goals and is looking to grow further in the future in the critical minerals space.”
If successful, the merger would create a diversified mining group listed in both London and Johannesburg, positioned to benefit from rising global demand for metals essential to the energy transition.
