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Shuka Minerals PLC said on Monday it has secured an extra loan to fund its acquisition of Leopard Exploration & Mining Ltd after its annual loss deteriorated.
The Africa-focused mine operator and developer reported pretax loss of £2.0 million in 2024, widened from £1.7 million in 2023.
Revenue slumped to £2,305 from £194,346.
Administration expenses rose 26% to £1.8 million from £1.4 million.
Shuka said the Rukwa coal mine in Tanzania, operated by its subsidiary Edenville International Tanzania Ltd, faced challenges throughout the year, and had been managed on care and maintenance basis.
However, a positive reassessment of the potential for the Rukwa mine, as well as various joint venture discussions, has resulted in a restart budget capex of $150,000 to return the mine to a targeted production rate by third quarter of this year.
Shuka said it has agreed extended terms on an extra £1.5 million non-dilutive and unsecured facility to complete the Leopard Exploration acquisition. The balance of cash due to the Leopard Exploration vendors is $1.35 million.
It entered into with Gathoni Muchai Investments on December 2 last year for an unsecured, non-convertible, interest free loan of £500,000.
Shuka also said the £2 million AUO Investments (Dubai) convertible loan note was extended by 12 months to March 2026, with repayment also extended 12 months to March 2027.
Looking ahead, Shuka said the Leopard Exploration deal and Kabwe project are a huge milestone in its growth and a ‘company changer’.
Shares in Shuka ended 1.1% higher at 5.16 pence on Monday in London, but they were flat at R 1.37 in Johannesburg.
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