Kazera Global plc (LSE:KZG) has entered into a definitive settlement agreement worth US$10.5 million with Hebei Xinjian Construction relating to the long-running dispute over the Aftan asset. The agreement replaces a previous arbitration award and establishes a structured payment programme extending through to December 2029.
The settlement will become effective once an initial payment of US$500,000 is received from Namibia. It incorporates both loan repayment and share sale elements, with the transfer of ownership in Aftan linked to a series of staged payment milestones supported by security arrangements, pledged assets and default protections.
Settlement Provides Greater Certainty and Enhanced Value
When combined with approximately US$4.1 million already received from Hebei, the agreement creates a contractual route for Kazera to receive around US$14.6 million in total proceeds. According to the company, this exceeds the original cash consideration agreed for Aftan in 2022 while reducing the uncertainty, costs and timing risks associated with continued legal enforcement proceedings.
Management believes the agreement delivers a more predictable outcome and strengthens the company’s financial position by securing a clear framework for future payments.
Majority of Proceeds Expected to Be Returned to Investors
Subject to regulatory requirements and other applicable constraints, the board intends to return approximately 80% of the net settlement proceeds to shareholders.
The initial cash inflows are also expected to strengthen the company’s near-term funding position and support ongoing development activities across its remaining portfolio. These include the advancement of the Whale Head Minerals project, the REMI processing partnership and efforts to secure the important 2A Mining Right.
Early Settlement Option and Strong Security Protections
The agreement also provides flexibility through an option allowing Hebei to settle its obligations early for a discounted amount of US$9.0 million if payment is completed by the end of 2026.
At the same time, Kazera retains significant protection against non-payment through security over Aftan shares and acceleration provisions that can be triggered in the event of a default. Management views the settlement as a key step in resolving legacy issues, unlocking value from historic assets and enabling the company to focus on a more disciplined approach to capital allocation and shareholder returns.
Outlook
Kazera’s investment outlook continues to be weighed down by weak financial performance, including the absence of revenue during 2025, ongoing losses and continued cash consumption. These factors contribute to a negative price-to-earnings ratio and reflect the company’s current lack of profitability.
Technical indicators provide a more balanced picture, with short-term momentum showing signs of improvement, although the longer-term trend remains weak relative to the 200-day moving average. Management believes successful execution of the settlement agreement and progress across its core mining projects could help improve the company’s financial profile over time.
More about Kazera Global
Kazera Global plc is an AIM-listed investment company focused on mining and mineral opportunities. The group has previously held interests in African Tantalum (Aftan), a Namibia-based tantalum and lithium operation, and is now concentrating on advancing a streamlined portfolio of resource assets.
Its current priorities include the development of the Whale Head Minerals project, the processing partnership with REMI at Walviskop and securing the 2A Mining Right. The company aims to generate long-term value through disciplined investment management, project development and strategic capital allocation.
Leave a Reply