GMI to continue to advance loan for Shuka to acquire LEM, Kabwe
African-focused mine operator and developer Shuka Minerals has received confirmation from African-focused investment banking and corporate finance group Gathoni Muchai Investments (GMI) that it will continue to advance to the company throughout December the full balance of the funds related to the the increased GMI loan announced on July 1.
This would allow Shuka to satisfy the $1.05-million balance of cash consideration due to the Leopard Exploration and Mining (LEM) loan.
In November, Shuka announced settlement of an initial tranche of the acquisition consideration for the company’s proposed acquisition of Zambian mining and exploration company LEM and the Kabwe zinc mine in central Zambia.
That gave the company an initial effective position of 22.2% in LEM and the Kabwe mine.
Further tranches are to be paid following receipt by Shuka of funds from GMI relating to the increase loan entered into on June 30, until the former’s interest in LEM has reached 49.9%.
Thereafter, a final tranche will comprise the balance of the acquisition cash, share and warrant consideration to acquire a resultant 100% of LEM, with completion of all tranches to occur by no later than December 31.
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