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Kazera Global PLC on Thursday said that it has received a further payment from Hebei Xinjian Construction Group Corporation Ltd regarding the sale of its interest in African Tantalum Ltd in Namibia.
The mining-focused investment company said that Xinjian has paid a further $650,000 for the interest in African Tantalum - or Aftan. The aggregate payments received now total $4.9 million.
Kazera first announced the sale of its 100% interest in Aftan to Xinjian in December, for a total consideration of $13.0 million.
The agreement comprises the sale of all shares and associated loans in Aftan, while Kazera will retain the right to receive a debenture payment equivalent to 2.5% of gross sales of produced lithium and tantalum for the life of the mine.
At the time, Kazera said the sale would allow it to invest in other projects, namely a heavy mineral sands opportunity in South Africa, without the need for additional capital raising.
‘This payment is a further indication of Xinjian’s desire to meet its obligations. As well as strengthening the company’s cash position, it further justifies our approach to continue working with Xinjian to achieve a mutually beneficial outcome,’ said Chief Executive Officer Dennis Edmonds.
Kazera shares were trading 5.7% higher at 0.82 pence in London on Thursday morning.
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