Kazera Signs Mineral Sands Offtake Agreement With Fujax South Africa
Kazera Signs Mineral Sands Offtake Agreement With Fujax South Africa. Kazera Global plc (AIM: KZG), the AIM-quoted investment company, is delighted to announce that its subsidiary, Whale Head Minerals (Pty) Ltd (“WHM”), has signed a sales and offtake agreement (the “Agreement”) for its heavy mineral sands (“HMS”) production with Fujax South Africa (Pty) Ltd (“Fujax”), a wholly owned subsidiary of Fujax Group Limited.
Dennis Edmonds, Chief Executive Officer of Kazera Global plc commented: “This is a very pleasing announcement to make. I am delighted that we have managed to secure this offtake which validates the progress we have made at WHM. Fujax is a well-established global commodities company and its willingness to provide Kazera with a significant prepayment and fair pricing structure speaks volumes about its quality as an offtake partner. Fujax’s contacts and financial backing makes them perfect partners both in the short term and for the planned expansion of our operations into the Perdevlei HMS project, which has a land area approximately 34 times larger than WHM’s current Walviskop project. Our focus is now on fine tuning the WHM plant to meet Fujax’s requirements with a view to ramping up production early in the new year.”
“While this 100,000 tonne offtake is substantial, it represents just the beginning. Walviskop boasts a JORC-indicated resource of approximately 1.5 million tonnes of heavy mineral sands which is continually being replenished by natural wave action. Add to that the resource which is represented by Perdevlei, and the Company becomes a serious player in the market. This agreement therefore represents a springboard for further growth and future opportunities for the Company.”
“As 2024 draws to a close, I would like to thank our shareholders for their trust and support this year. I would also like to express my appreciation for all the work done by Johan Truter and our team in South Africa. They have done a great job in, often, extremely trying circumstances. I wish everyone the very best for the festive season and for 2025, a year which I am confident will be transformational for the Company.”
Chris Dyason of Fujax commented: “We are delighted to secure this partnership and offtake agreement with WHM. The quality of the HMS at Walviskop is excellent and, with Kazera planning to significantly expand the project, we feel it is an hugely opportune time to be partnering with the Group.”
Kazera remains committed to advancing its high-grade HMS project in South Africa. Production has recently commenced at a pilot plant for the WHM project, which the Company intends to scale up as it pursues mining rights for the nearby Perdevlei HMS concession. This concession, which has a land area circa 34 times larger than WHM’s current Walviskop project, has similar project dynamics and significant potential.
