Marula to acquire stake in Mansena Kruisrivier Cobalt mine
Marula Mining, has entered into a binding term sheet to acquire in Mansena Kruisrivier Cobalt (MKC) in South Africa.
The project is located in Limpopo, South Africa, known for its favorable mining jurisdiction and good infrastructure. MKC holds a prospecting right LP30/5/1/1/2/13532PR, covering the area where the Kruisrivier cobalt mine is situated.
Kruisrivier cobalt mine operated intermittently for over 55 years until the 1930s, producing cobalt ore concentrates with high cobalt grades up to 16.67% and gold grades up to 68g/t. Recent due diligence by Marula confirmed visible high-grade cobalt mineralization at surface and in shallow underground workings, validating the potential of the project.
Stake agreement
The 51% stake deal was sealed through Marula’s subsidiary Muchai Mining South Africa (MMSA) and will be acquired through a combination of new ordinary shares and cash payments. Marula will issue £100,000 worth of new ordinary shares initially, followed by a cash payment of £100,000 after final due diligence. Additional financial commitments include covering the costs for an updated bankable feasibility study and paying a management fee until the study’s completion. Further payments, including share issuances and cash fees, are contingent upon milestones related to the project’s development and mining decision.
Marula’s CEO, Jason Brewer, emphasized the strategic importance of this acquisition, highlighting the project’s potential in cobalt production. Cobalt is a critical mineral used in rechargeable batteries, particularly for electric vehicles, aligning with the growing demand for green energy solutions.
