Marula Mining signs binding term sheet to acquire a 51% shareholding in Mansena Kruisrivier Cobalt Proprietary Limited
Marula Mining, an African focused mining and development company, is pleased to announce that through its wholly owned South African subsidiary, Muchai Mining South Africa Proprietary Limited, (“MMSA”), it has signed a binding term sheet (“Term Sheet”) with South African mining company Mansena Cobalt Proprietary Limited (“MC”) to acquire a 51% shareholding in Mansena Kruisrivier Cobalt Proprietary Limited (“MKC”).
MKC is the registered holder of Prospecting Right LP30/5/1/1/2/13532PR, which extends over 2,340.90 hectares of the Kruisrivier 74 JC Farm located in the Elias Motsoaledi District of Limpopo Province in South Africa and which includes the historical Kruisrivier Cobalt Mine (the “Project” or “Kruisrivier Cobalt”). MKC has lodged a Mining Permit application, which has been accepted and is expected to be issued in due course.
Kruisrivier Cobalt, is a former producing cobalt mine that operated intermittently for over 55 years up to the 1930s. Historical records confirm the presence of high-grade cobalt, gold, nickel, copper, chromium, zinc, lead, platinum and silver mineralisation as well production and sales of high-grade concentrates of cobalt ore of up to 16.67% cobalt and accompanied by exceptionally high-grade gold grades of up 68 grammes per tonne (“g/t”). Current non-JORC compliant historical resources of 733,000t of ore grading 8% cobalt have also been reported down to a depth of 200 metres (“m”).
Due diligence work completed by the Company and its technical team has confirmed the presence of visible high grade cobalt mineralisation and which has been identified at surface in waste stockpiles and in the shallow underground workings in narrow veins and lenses of cobalt ore of between 0.5m and 4.0m in widths. The cobalt mineralisation occurs as a cobalt arsenate deposit with both safflorite, and erythrite. Independent assay results on samples taken in Q4 2023 reported 8.31% cobalt, 0.81% nickel, 323g/t molybdenum and 164g/t gold and also 2.73g/t palladium, 0.16g/t platinum, 1.91g/t rhodium and 86g/t gold.
Under the commercial terms of the Terms Sheet, the Company will now issue £100,000 of 1,000,000 new ordinary shares at a price of 10 pence per share (“MKC Shares”) and then make a further cash payment of £100,000 on completion of final due diligence. The Company will also fund 100% of the costs to complete an updated bankable feasibility study, as well as pay a monthly management fee of ZAR100,000 (approx. £4,300) to MC until completion of the feasibility study. On the earlier of 12 months from signing of the Term Sheet or a decision to mine, the Company will issue a further £200,000 of ordinary shares at a price of 10 pence per share and pay a cash fee of US$1,700,000.
