Marula Mining has signed an amendment to a previous share sales and purchase agreement to enable its subsidiary, Muchai Mining Kenya, to acquire the remaining 20% minority shareholding in Agarwal Metals and Ores (AMO), which owns the Kilifi manganese processing plant in Kenya.
Marula formalised a deal to acquire an 80% stake in AMO in August 2024.
The revised agreement increases Muchai Mining’s ownership in the Kilifi plant to 100%.
Under the acquisition terms, Marula will make a cash payment of $1.3m, with the option to pay in full or in part by 31 December 2025.
Additionally, Marula has agreed to issue 12 million new ordinary shares at an issue price of 4.5 pence per share to the minority shareholder.
The stake increase follows the recently approved five-year budget for the Kilifi plant, which forecasts total gross sales revenues of $182.5m and cash flow of $63.5m.
Further, the wet commissioning of the Kilifi plant is scheduled for completion by 12 May 2025.
The first manganese sales, initially delayed, are now set to commence in May 2025, with no penalties incurred by any party involved.
Marula Mining CEO Jason Brewer said: “We are pleased to have signed terms to acquire 100% ownership of the Kilifi Plant at this critical time and the company is set to complete the wet commissioning of the plant and move to processing and export operations.
“This acquisition strengthens the company’s strategic and commercial flexibility at the Kilifi Plant as we transition into first sales and as we also look to further optimise the operations.
“The commercial terms that have been agreed for this acquisition, I believe are very attractive for the company and for shareholders, particularly when looking at the project economics that were recently released in the five-year budget.”
