Shuka Minerals has secured a £2 million funding facility to finalise the acquisition of Zambia’s Kabwe Zinc Mine and commence initial exploration work at the site. The updated agreement includes £1.5 million in fresh capital from Gathoni Muchai Investments Limited (GMI), covering the US$1.35 million cash consideration due to vendors and providing additional working capital for upcoming operations.

The acquisition of Leopard Exploration and Mining Limited (LEM), which owns the Kabwe Mine, now moves closer to completion following the satisfaction of all conditions in the Share Purchase Agreement (SPA), originally signed in December 2024.

Shuka confirmed that technical site visits in Zambia, along with meetings in Lusaka and South Africa with stakeholders and financiers, have paved the way for finalising the transaction before the 30 June 2025 long-stop date.

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Under an addendum to the SPA, the $3.0 million share consideration will be settled through the issue of 28,640,042 new Shuka shares at 7.737p per share. In exchange for waiving deferred shares, LEM vendors will also receive 2,000,000 warrants with an exercise price of 12.5p per share, expiring 31 December 2027.

GMI, Shuka’s second-largest shareholder, has already invested over £1 million in the company and has confirmed its ability to fund the extended facility. The loan remains unsecured, non-convertible and carries 5% annual interest, payable from 30 May 2026. An establishment fee of £45,000 will be settled in shares at 8p per share.

The completion of the transaction, including the transfer of LEM shares, the issue of consideration shares and warrants and final payment, is set to take place soon.

Commenting on the development, CEO Richard Lloyd said: “This is the biggest milestone achieved in my short tenure as CEO and one which the market, shareholders and all stakeholders in Shuka have been waiting for. The increased loan facility and SPA addendum not only opens the path to completion of the LEM/Kabwe transaction but will allow us to enhance our understanding of the full geological potential of Kabwe. The company can now accelerate its geological, mining and mineral processing planning for this world-famous asset.”