Marula to purchase Kilifi Manganese Processing Plant
Marula Mining is set to purchase the Kilifi Manganese Processing Plant in Kenya. Jason Brewer, Marula Mining PLC CEO, confirmed the report and said the firm sealed a binding Terms Sheet to acquire an 80% shareholding in Agarwal Metals and Ores (AMO), a Kenyan incorporated mineral processing company.
The move is aimed at bolstering its presence in the East African battery metals market, specifically manganese processing. Kilifi Manganese Processing Plant is situated approximately 60 km from the Port of Mombasa and has been since 2023.
Kilifi Manganese Processing Plant
The plant features essential equipment for mineral processing such as vibrating feeders, scrubbers, conveyors, crushers, and separators. The site is equipped with power supply, water, administration buildings, security facilities, and logistics infrastructure. It is capable of processing about 10,000 tonnes per month (tpm) of manganese ores.
The financial terms include an initial payment of £100,000 cash and issuance of £500,000 worth of new ordinary shares (5,000,000 shares at 10 pence per share). Upon finalization of the share sale and purchase agreement and regulatory approvals, Marula Mining will make an additional £2,000,000 cash payment and issue another £500,000 worth of new ordinary shares.
Marula Mining views this acquisition as integral to its expansion and growth plans in East Africa, focusing on battery metal mining and processing. The move aims to secure a reliable supply of manganese ore, essential for the operations of the Kilifi Plant.
Marula Mining plans to finalize the acquisition, secure long-term manganese ore supply, negotiate sales and offtake agreements, and commence processing operations and mineral exports. Further updates are expected as these activities progress.
