Kazera Global (LSE:KZG) has reached a full and final settlement with Fujax South Africa concerning disputed prepayment arrangements associated with its Whale Head Minerals subsidiary.
Under the settlement, the liability has been reduced from approximately US$1.32 million to US$1.0 million.
The agreed consideration comprises US$500,000 to be settled through the issue of new Kazera shares and a further US$500,000 through staged cash payments.
Settlement Addresses Whale Head Minerals Liability
The agreement resolves the disputed prepayment arrangements between Kazera and Fujax South Africa.
The settlement comes as Whale Head Minerals progresses its operations following the granting of a Mining Right covering Sea Concession 2A.
No further financial terms relating to the settlement were included in the supplied information.
Board Considers Fundraising of at Least £500,000
Separately, Kazera’s board is considering an equity fundraising of at least £500,000.
The company said potential proceeds would be used to support its balance sheet and provide financial flexibility for its existing portfolio and possible new investments in critical minerals.
The size and terms of any fundraising have not yet been determined.
Trading Suspended During Capital Access Window
Kazera has entered a Capital Access Window under updated AIM rules while it assesses investor demand for the potential equity issue.
Trading in the company’s shares has been temporarily suspended during this process.
Kazera said trading is expected to resume after it announces the outcome of the potential fundraising. The fundraising remains under consideration and has not been presented as completed.
Kazera Global Operations
Kazera Global plc is an AIM-listed commodity investment company with interests in South Africa.
Its portfolio includes Whale Head Minerals, which is focused on heavy mineral sands, and Deep Blue Minerals, a diamond operation in the Northern Cape.
The company is also evaluating potential investments in critical mineral assets.
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