Aim-listed Kazera Global has received the initial advance payment of $750 000 from South Africa AT Investments (SAI), as provided for under the long-term mining cooperation and production sharing agreement between SAI and the company's South African subsidiary, Whale Head Minerals (WHM), which was announced on July 9.

Kazera explains that the receipt of the payment represents the first commercial milestone under the strategic partnership and demonstrates SAI's commitment to the long-term development of WHM's heavy mineral sands (HMS) assets.

The agreement establishes a fully funded long-term strategic partnership for the development of WHM's existing Walviskop operations and, subject to the grant of the 2A Mining Right, the future industrial-scale development of the substantially larger 2A project.

Under the terms of the agreement, SAI will fund 100% of the capital expenditure, mining and processing operating costs, infrastructure, equipment deployment and working capital required for the mining and processing operations covered by the agreement, while WHM retains a continuing 20% entitlement to HMS production and ownership of its mining rights and permits.

The parties will now begin implementation of the agreement, including preparation of the comprehensive mine plan, which will establish production and heavy mineral concentrate grade targets for the project.

Following receipt of the $750 000 payment, together with the recent receipt of the $500 000 under the Hebei settlement agreement, the company's funding position has been materially strengthened.

Accordingly, Kazera says the board does not anticipate any requirement for further drawdowns under the existing loan facility provided by Kazera interim CEO Richard Jennings.

A further advance payment of $1.75-million is payable by SAI upon the grant of the 2A Mining Right.

Jennings says the receipt of the initial $750 000 payment marks the first commercial milestone under this important strategic partnership and demonstrates SAI's commitment to the development of the company’s HMS assets.

"Together with the recent receipt of funds under the Hebei settlement agreement, this significantly strengthens Kazera's financial position from that which I inherited from previous management and provides us with increased financial flexibility as we move into the next phase of development.

"Our immediate focus is working with SAI on the comprehensive mine plan, which will establish the production and grade targets for the project and set out the next phase of development. We look forward to updating shareholders as those milestones are achieved,” he says.