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Shuka Minerals is poised to finalize its acquisition of Zambia’s historic Kabwe Zinc Mine, having secured a crucial £2 million funding facility. This strategic move, bolstered by a significant capital injection from Gathoni Muchai Investments Limited (GMI), paves the way for accelerated geological, mining, and mineral processing planning at the renowned site.
The updated agreement includes £1.5 million in fresh capital from GMI, a key financier and Shuka’s second-largest shareholder. This substantial sum will cover the US$1.35 million cash consideration due to vendors and provide vital working capital for the initial exploration work at Kabwe. GMI has already invested over £1 million in Shuka, demonstrating its continued confidence in the company’s prospects. The new loan facility remains unsecured, non-convertible, and carries a 5% annual interest, with payments commencing from May 30, 2026. An establishment fee of £45,000 will be settled in shares at 8p per share.
The acquisition of Leopard Exploration and Mining Limited (LEM), the holding company for the Kabwe Mine, is now nearing completion. All conditions stipulated in the Share Purchase Agreement (SPA), originally signed in December 2024, have been satisfied. Shuka confirmed that a series of technical site visits in Zambia, coupled with productive meetings in Lusaka and South Africa with stakeholders and financiers, were instrumental in clearing the path for the transaction to conclude before the June 30, 2025, long-stop date.
Under an addendum to the SPA, the $3.0 million share consideration will be settled through the issuance of 28,640,042 new Shuka shares at 7.737p per share. Additionally, in exchange for waiving deferred shares, LEM vendors will receive 2,000,000 warrants with an exercise price of 12.5p per share, expiring on December 31, 2027.
Richard Lloyd, CEO of Shuka Minerals, expressed his enthusiasm about the development: “This is the biggest milestone achieved in my short tenure as CEO and one which the market, shareholders and all stakeholders in Shuka have been waiting for.” Lloyd emphasized that the increased loan facility and SPA addendum not only facilitate the completion of the LEM/Kabwe transaction but also “will allow us to enhance our understanding of the full geological potential of Kabwe.” He concluded, “The company can now accelerate its geological, mining and mineral processing planning for this world-famous asset.”
The finalization of the transaction, encompassing the transfer of LEM shares, the issuance of consideration shares and warrants, and the concluding payment, is anticipated imminently. This strategic acquisition is set to significantly advance Shuka Minerals’ presence in the global mining sector.
