JOHANNESBURG (miningweekly.com) – ASX-listed Nzuri Copper has received the second and final tranche of funds from a $10-million strategic investment by major cobalt player Huayou Cobalt.
The first tranche, comprising the issue of 26.47-million tranche 1 shares for about $6.64-million, was completed on December 19.
The second $3.36-million tranche has been advanced as a convertible loan, on an unsecured and interest-free basis, with Nzuri planning to seek shareholder approval to issue the shares on conversion of this loan at its upcoming shareholder meeting on January 25.
Following the receipt of shareholder approval, Huayou will be issued a further 13.41-million shares and, together with its tranche 1 shares, will have a 14.76% interest in the company.
“Nzuri’s largest shareholder, Tembo Capital, has provided Nzuri with a written statement confirming its intention to vote all of the 132.08-million shares it holds in Nzuri, about 51.44%, in favour of the issue of the tranche 2 shares on conversion of the loan,” the company said in an update to shareholders.
Nzuri intends to use the proceeds for ongoing development and optimisation studies on its flagship Kalongwe copper/cobalt project, in the Democratic Republic of the Congo, to pursue an aggressive ongoing exploration campaign within its Fold and Thrust Belt joint venture and for general working capital.
Huayou will also be entitled to nominate one representative to the board of Nzuri, subject to all necessary consents.