Aim-listed investment company Kazera Global has concluded a plan with contract drilling company DJ Drilling, which they believe will lead to the profitable production of tantalum from its mine in Namibia before the end of this year.
DJ Drilling will, as a result, take over the day-to-day operation of mining activities on a contract basis.
Since moving onto site in June, DJ Drilling has upgraded roads and general infrastructure, as well as conducting plant maintenance.
In line with its continued commitment to the mine, DJ Drilling has agreed on a fixed price contract with Kazera, which will see the mine be moved back into operation and producing tantalum by year-end.
DJ Drilling will then be predominantly paid out of profits generated from the sale of tantalum.
During the last few months, Kazera has been constantly updated by both prospective investors, both of whom remain confident that they will be able to make their investments shortly at the original investment level of about 2.7p a share.
Both investors are awaiting the conclusion of other transactions and neither is able to control the speed at which these bigger transactions come to conclusion, Kazera said on September 1.
Both investors recognise the material value of the Tantalum Valley mine to Namibia and the immediate environs, and both remain focused on completing their side of the existing agreements with the company, it added.
Once these funds are received, the investors will substantially accelerate the development of the mine and further exploration into both the tantalum and lithium deposits on site along with a Phase 3 drilling programme to add further to the resource.
Kazera joint CEO Larry Johnson on Wednesday said that while the company remains focused on the accelerated opportunities that an $11-million investment would create, the miner remains conscious “that the process has taken longer than anyone had originally contemplated as a result of outside factors”.
Johnson added that, rather than continue to wait, the board has elected to move forward, albeit on a smaller scale, with a view to accelerating operations at the mine once the investments come through and in a manner that is nondilutive to existing shareholders.