Marula Mining
PLC
("Marula'' or the "Company")
27 March
2024
Commencement of Exploration
Activities at Larisoro Manganese Mine
Marula Mining (AQSE: MARU), an
African-focused mining and development company, is pleased to
provide an update on the transaction, as announced on 1 March 2024,
with Gems and Industrial Minerals Limited
("GIM") under which the Company would secure a commercial interest
in the Larisoro Manganese Mine located in Samburu County in
Northern Kenya (the "Mine").
Under the terms of a binding terms
sheet ("Term Sheet"), and subject to entering into a Technical Support Agreement ("TSA") and a
Commercial Agreement ("CA") with GIM, Marula would need to utilise
its forecast excess cashflow from its South African lithium mining
operations to provide investment of US$1,500,000 for new mining,
crushing, screening and processing equipment aimed at increasing
monthly manganese ("Mn") ore production to between 5,000 tonnes and
10,000 tonnes of saleable high-grade manganese ore over the next
three to six months. Marula will also complete a further investment of approx. US$1,750,000, in an initial exploration
program to be completed over the course of 2024, with the aim of
increasing the mineral resources and understanding the extent and
characteristics of the manganese mineralisation at the
Mine.
Highlights:
·
Exploration activities have commenced, with the
Company's Head of Exploration East Africa Collins Aseto, and his
geological team, having mobilised to site last week
·
Current exploration activities are focused on
mapping and sampling of visible and shallow manganese
mineralisation in the three shallow open
pits and of outcropping surface manganese mineralisation that
extends beyond the current mining operations, and which has also
been identified at various locations on the granted mining
rights
·
The work to date by the Company's geological team
has already confirmed strike extensions of the manganese
mineralisation over 2.5 kilometres south of the existing open pit
operations
·
This initial work has indicated that high-grade
manganese mineralisation appears to remain open down-dip and along
strike and provides initial support for the Company's plans to
expand the current open pit mining operations
·
Samples of the manganese mineralisation exposed in
the open pits and of other exposed manganese mineralisation on the
mining right license areas are being taken to confirm the
historically assayed grades, as well as the recent assay results
received in December 2023 that averaged 37.72% Mn and further be
used to support the new and expanded mining plans and
schedules
·
Mapping and sampling is being completed ahead of
the ground survey work and resource drilling work that the Company
proposes to commence in Q2 2024
·
Representatives from specialist mining equipment
and crushing and screening contractors are also on site at the
Mine, completing on-site inspections and
assessments of the existing mining and processing equipment and of
the manganese mineralisation
·
It is proposed that maintenance and refurbishment
of the existing Mine and processing equipment will then commence in
Q2 2024, allowing operations to continue ahead of the planned
arrival of new mobile mining, crushing and screening and processing
equipment later in Q2 2024
·
Planning work has also commenced for the
establishment of new site administration and technical offices,
workshops and stockpiling and warehousing facilities and
construction is also expected to commence in Q2 2024
·
Ongoing discussions are continuing with logistics
and transportation groups for the appointment of new contractors
for the transportation of the manganese ore from the Mine to the
designated warehouse facilities under planned new sales and
offtake agreements
·
New long-term manganese ore offtake discussions
continue to progress with a European based
commodity trading group following a site visit and testing of the
manganese ore
·
An initial trial shipment of 2,000 tonnes of manganese ore is proposed to be delivered
to the proposed offtake party in Q2 2024 as part of long-term
offtake agreement discussions
·
The Company recently welcomed a number of
representatives at its offices in Nairobi, from the Archers Post
and Samburu communities. Discussions focused on the need for an
active and transparent community engagement
program which supports and empowers the communities and planned
mining activities.
·
Further broad-based community meetings are planned
in Archers Post and Samburu in early Q2 2024 along with the
commencement of its partnership with the Mayflower Children's Foundation with refurbishment work at the
Nakwamor Primary School
·
The Company is also pleased to confirm that in
accordance with the Term Sheet, documentation of the formal TSA and
CA documentation is progressing with the Company's Kenyan legal
counsel and with GIM and is expected to now be signed in Q2
2024.
Collins Aseto, Marula Mining Head of Exploration East Africa
said:
"Our initial exploration program has now commenced, and
already it is pleasing to be able to report strike extensions and
continuity of the manganese mineralisation that is highly visible
in the existing shallow open pit operations.
"The aim of this current work is to increase our geological
understanding of this mineralisation, map its extent across the
mining rights and through our planned ground survey work and
drilling programs, look to expand the resource base allowing us to
materially increase the scale of our proposed mining and processing
operations.
"We are making great progress across all aspects of our
planned investment here at the Larisoro Manganese Mine.
Refurbishment and maintenance work on the existing plant and
equipment is being planned ahead of the arrival of new mining and
processing equipment, and that will allow the operation to start to
achieve some of the initial production targets we are
setting.
"Importantly, community engagement activities are underway and
we are remaining focused on fostering positive community
relationships and active engagement with all key
stakeholders as we look to establish the Larisoro Manganese Mine as
a responsible and sustainable mining enterprise in
Kenya.
"We also look forward to sharing more updates on our
exploration activities and on our investment to achieve the initial
expanded targets and continuous advancement of the
mine."
The
Directors of Marula are responsible for the contents of this
announcement.
About Marula Mining
Marula Mining (AQSE: MARU) is an
African focused battery metals investment and exploration company
and has interests in several high value mine projects in Africa;
the Blesberg Lithium and Tantalum Mine and Korridor Lithium Project
in South Africa, the Kinusi Copper Mine, the Nyorinyori Graphite
Project, the NyoriGreen Graphite Project and the Bagamoyo Graphite
Project all in Tanzania, the Nkombwa Hill Project in Zambia
and the Larisoro Manganese Mine located in Kenya. As we advance
operations at these battery metals focused projects, Marula will
continue to build and expand its interests in other high-quality
projects in Africa.
Marula's strategy is to identify and
invest in advanced and high-value mining projects throughout East,
Central and Southern Africa that the Directors believe would
deliver returns for its shareholders. The Board and management team
aims to establish Marula as a socially and environmentally
responsible, sustainable, and profitable producer of critical
metals and commodities that are of increasingly strategic
importance to modern technologies and the global economy. Marula's
shares are traded on the AQUIS Stock Exchange (AQSE), Marula is
exploring opportunities to admit its shares to trading on the
London Stock Exchange plc's Standard List, Kenya's Nairobi
Securities Exchange and South Africa's Johannesburg Stock
Exchange.
For
enquiries contact:
Marula Mining PLC
Jason Brewer,
Chief Executive Officer
Faith Kinyanjui Mumbi
Investor Relations
|
Email :
jason@marulamining.com
Email :
info@marulamining.com
|
AQSE Corporate Adviser
Cairn Financial Advisers LLP,
Liam Murray / Ludovico Lazzaretti
|
+44 (0)20
7213 0880
|
Broker
Peterhouse Capital Limited,
Charles Goodfellow / Duncan Vasey
|
+44
(0)20 7469 0930
|
Financial PR and IR
BlytheRay
Tim
Blythe / Megan Ray / Said Izagaren
|
+44 (0)20 7138 3204
|
Caution:
Certain statements in this
announcement, are, or may be deemed to be, forward looking
statements. Forward looking statements are identified by their use
of terms and phrases such as ''believe'', ''could'', "should"
''envisage'', ''estimate'', ''intend'', ''may'', ''plan'',
''potentially'', "expect", ''will'' or the negative of those,
variations or comparable expressions, including references to
assumptions. These forward-looking statements are not based on
historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of
operations, performance, future capital and other expenditures
(including the amount, nature and sources of funding thereof),
competitive advantages, business prospects and opportunities. Such
forward looking statements reflect the Directors' current beliefs
and assumptions and are based on information currently available to
the Directors.