Africa-focused battery metals investment and exploration company Marula Mining has signed a co-development agreement and a relationship agreement with K2020273872 (South Africa), a wholly owned subsidiary of Q Global Commodities Group, a South African independent commodity, mining, logistics and investment funds.
The signing of the agreements follows the earlier signing of a £3.75-million subscription agreement with Q Global.
It is intended that Q Global CEO Quinton van der Burgh will be appointed chairperson of the Marula board of directors, subject to various conditions, including completion of all normal regulatory approvals, due diligence and the proposed admission to trading of Marula’s shares to Aim.
The co-development agreement sets out the broad technical and strategic support that is to be provided to the company by Q Global to allow for the accelerated development of its current portfolio of mining projects in Africa.
The co-development agreement further provides the opportunity for Q Global to participate directly through the co-development of the company’s current projects and new projects identified by Marula.
Marula’s shares are currently traded on the AQUIS Stock Exchange (AQSE) and it is exploring opportunities to admit its shares to trading on the LSE’s Aim.
The relationship agreement sets out the terms of the relationship between Q Global, the company and the company’s AQSE corporate adviser.
Under the relationship agreement, which is conditional on the first subscription under the subscription agreement, among other things, Q Global undertakes to act for the benefit of the shareholders of Marula, as a whole; to conduct transactions between itself and the company on an arms-length basis; and to not unduly or improperly influence the running of the company.
The initial subscription is conditional on, besides other things, a Rule 9 waiver being obtained in accordance with the City Code on Takeovers and Mergers and shareholder approval at a forthcoming general meeting of the company.
“It is very pleasing to have signed both the co-development agreement and relationship agreement.
“Having recently met with the Q Global team and Quinton van der Burgh at the Mining Indaba Investment Conference in Cape Town, I am delighted by this partnership and the potential opportunities for Marula and our shareholders,” says Marula CEO Jason Brewer.
Marula has interests in several high-value mine projects in Africa, including Blesberg lithium and tantalum mine, in South Africa; the Nkombwa Hill project, in Zambia; and the Kinusi copper mine and Bagamoyo graphite project, in Tanzania.