Aim-listed Kazera Global has announced the conditional acquisition of a controlling interest in a near-term producing diamond mine, as well as in a heavy mineral sands (HMS) opportunity in South Africa.

Kazera will acquire a 90% stake in Deep Blue Minerals (DBM), for £600 000 in shares to be issued to Richard Jennings.

Kazera indicated that it was pursuing near-term diamond production via DBM, noting that it had historical production grades of 10 ct per hundred tons, producing more than 10-million carats of gem grade diamonds since production began in 1928.

DBM has an inferred mineral resources of 208 000 ct.

Meanwhile, Kazera is set to also acquire a stake in Wale Head Minerals (WHM), representing 90% of its current issued share capital or such percentage as is available, but only once all necessary arrangements with black economic empowerment partners under South African law are in place.

Kazera will assume $500 000 of liabilities from the vendor of the shares in WHM, subject to the completion of certain milestones, to be satisfied through the issue of ordinary shares at the volume weighted average price of the ordinary shares at the time the milestones are met.

Completion of the acquisition in the case of WHM is subject to the receipt of a competent persons’ report in terms satisfactory to the company, as well as the receipt of a mining permit in respect of heavy mineral sands (HMS) deposits over the area known as the Walviskop.

The work programme is to be funded by diamond production revenue and will aim to produce over 6 000 t a month of HMS.

Possible partners have been identified to build a processing plant on site at their own cost, which is expected to greatly improve HMS profit targets.

Commenting on the rationale for the acquisitions, Kazera says both acquisition targets have simple work programmes required to restart production; experienced staff and management teams; are located on the border between South Africa and Namibia, within 450 km of its own Tantalite Valley Mine (TVM), in Namibia; and are aligned with Kazera’s policy of investing in high-impact commodities in the African mining sector at the bottom of their cycle.

Kazera has also moved to strengthen its balance sheet and allow it to exploit the above opportunities by raising £750 000 through the issue of 150-million ordinary shares.

Kazera has also appointed a new executive director, with Dennis Edmonds to take responsibility for the diamond and HMS projects.

"We are very pleased to announce this transaction. With high-growth potential and near-term revenue opportunities, leveraging on our board expertise and flexibility, this investment is typical of the value we seek to create at Kazera. We are investing in a ready-built team with bespoke experience for the geology on the licence.

"Kazera will be taking a majority interest in the joint venture and expects to enjoy near-term revenue generation, which will be a significant boost to our company and will facilitate not just growth at our South African diamond and HMS fields but also at TVM, where we continue to unearth value,” says Kazera CEO Larry Johnson.