Shuka Minerals (SKA) is continuing to make progress with is acquisition of the Zambian mining and exploration company, Leopard Exploration and Mining, and through it the Kabwe zinc mine in central Zambia.
The deal was initially announced in December 2024, when a conditional Share Purchase Agreement with LEM shareholders was signed.
Since the start of 2025, Shuka and its legal and corporate advisers have been working closely to finalise the outstanding conditions, to complete the Kabwe Acquisition ahead of the expected March 2025 completion date.
Technical site visits have been undertaken in Zambia and meetings in Lusaka and South Africa have also been held with key stakeholders and Shuka’s existing, and potentially new, providers of finance.
Over the past three weeks, the company's executive management and key advisers and consultants have been in Southern and East Africa.
Positive meetings have been held with a number of key stakeholders in respect to the Kabwe acquisition and Shuka's existing Rukwa coal mining operations in Tanzania.
During a recent site visit to Kabwe, the company's recently appointed chief executive, Richard Lloyd, was able to observe high-grade zinc mineralisation from identified deposits outcropping at surface, as well as local small scale zinc and base metals mining and processing operations.
A number of samples were taken during the site visit and these have been submitted to ALS Zambia's laboratory in Lusaka for grade and metallurgical testing.
The assay results from these samples are expected to be received later in the current quarter.
Key stakeholders in both Zambia's capital city, Lusaka, and in Kabwe, and including the Kabwe District Commissioner and local mine operators and service providers, were extremely engaged and positive about the company's proposed acquisition of the Kabwe mine.
Additional support has been received by the Minister of Mines, Permanent Secretary and the Director of the Zambian Mining Cadastre.
Meanwhile, Shuka is finalising the appointment of Zambian-headquartered GeoQuest Ltd, a fully independent geological and environmental consultancy and contract services group, to assist in the Kabwe mine project development site activities and planning.
New project budgets and implementation schedules are also being finalised and will be submitted to the board for approval later this quarter.
The company continues carefully to manage its working capital position and its creditors. It’s also continuing to work with its financial advisers and a number of European and African based groups on longer-term financing arrangements.
This includes the funding necessary to meet cash consideration due to the LEM Shareholders under the SPA to enable the company to complete the Kabwe acquisition, and funding required to commence its exploration and development work at the Kabwe mine post-completion.
As part of this process, on 2 December 2024, the company announced an agreement with Gathoni Muchai Investments Limited, its second largest shareholder, for an unsecured, interest-free and non-convertible loan of £500,000. The company has drawn £250,000 of this to date, and further drawdowns are planned in the current quarter.
"A great deal has happened in a very short space of time since my engagement in mid-December 2024 and a new Shuka board having been put in place, with the focus being to complete the acquisition and re-develop the famous Kabwe mine in Zambia,” said Shukwa chief executive Richard Lloyd.
“We continue to understand the full potential of Kabwe and the support from potential funders in various forms of funding ideas is encouraging. The budgeting and timeframes need to be clearly thought out. I thank our expanding team and advisers for their unwavering support and great ideas. The support locally in Kabwe and nationally for such an iconic Zambian asset is extremely gratifying."
View from Vox
There are a lot of moving parts here, but if it all comes together Shukwa could well establish itself as a significant player in the Zambian mining scene. Kabwe is an iconic name, and Zambia remains a jurisdiction that’s humming with activity and opportunity.