Aim-listed Kazera Global’s 70%-owned subsidiary Whale Head Minerals (WHM) has issued its first invoice for the sale of 10 000 t of heavy mineral sands (HMS) mined at its operations in Alexander Bay, South Africa, to metals and minerals trading company Fujax South Africa.

The company says this initial sale of 10 000 t surpasses the originally expected sale of 6 000 t.

Kazera says the start of HMS sales marks a significant milestone for both WHM and the group. It also highlights the growing strength of WHM's operations and its increasing contribution to Kazera's overall success.

“This is a landmark and transformative moment for Kazera Global. WHM is incredibly fortunate to have such a rich mineral resource that can generate cash with minimal processing,” says Kazera CEO Dennis Edmonds.

He expresses that the sale of this initial 10 000 t of HMS, which exceeds the company’s initial expectations, demonstrates the strength of the operational capabilities of its investee company.

The company notes that WHM will be paid 80% of the anticipated final sales price – less costs – on invoice. The balance of the sales price, less costs, will be paid to WHM within five days of the final sale of the product.

WHM and Fujax will work together to build a stockpile and to improve the grade of the HMS.

Kazera explains that Fujax is responsible for, and will carry all the costs of transporting, processing, assaying and selling the HMS, together with paying all taxes, levies, duties, custom clearance, loading and other charges.

“The focus now is on improving margins by cutting transport costs and improving the purity of the end product, as well as selling diamonds. We also eagerly await the granting of a Mining Right over the much bigger area encompassed by 2A.

“The board is very proud of the WHM team in South Africa who have worked tirelessly to get us to this stage, and grateful to Fujax and the numerous people in South Africa who have provided support, as well as all of our shareholders who have been with us throughout this journey,” says Edmonds.