KENYA – Kazera Global, a UK company, has signed a deal to acquire a 71% stake equivalent to US$919,353 (£750,000) in Great Lakes Graphite-a Canadian firm that has vast interests in rare metal mines in the Nyanza region, Kenya.
Kazera will pay £250,000 (US$306,451) in the first tranche at 1.5p per share, and £250,000 (US$306,451) in the second tranche at 2.5p per share, upon completing the Definitive Feasibility Study (DFS).
The company will pay £250,000 (US$306,451) in the third tranche, at 2.5p per share, following the announcement of initial ore production.
Through acquiring a majority stake in Great Lakes Graphite, Kazera Global will get access to three exploration licenses covering the Homa Bay and Buru Hill Rare Earth Elements projects in Kenya.
The UK firm is focused principally, but not exclusively, on the resources and energy sectors.
Great Lakes says it is an East African-focused company exploring and developing new graphite mines and projects to meet the increased demand from the fast-growing green technology and renewable energy and electric vehicle sectors.
As part of the transaction, Kazera will also grant an option to Caracal Investments Limited to acquire 20 percent of Great Lakes for US$1 million (KSh118 million).
“Assuming the exercise of the option the shareholding of Great Lakes Graphite will be 51 percent Kazera, 20 percent Caracal and 29 percent current shareholders,” Kazera said in a statement.
Under the deal, the firms said Great Lakes is undertaking a scoping study and will also publish a mineral resource estimate within the next six months.
Currently, the UK firm has two primary investments in African Tantalum (Pty) Ltd; a Namibian-based operation focused on resource definition of tantalite and lithium and a diamond and Heavy Mineral Sands project in South Africa.
According to Kazera CEO Dennis Edmonds, the acquisition of a 71% interest in Great Lakes Graphite gives the company a unique exposure to three highly exciting exploration licenses, which have the demonstrable potential for economic delivery of some of the most critical materials for the 21st century.
Great Lakes owns the three licenses covering the Homa Bay and Buru Hill rare earth projects.
Available data shows that the Nyanza area contains 65,000 tonnes of cerium, 52,000 tonnes of lanthanum and 18,000 tonnes of neodymium, said the firms.
Rare earth elements are a significant component in the manufacture of magnets for electronic vehicles and turbines.