AIM-listed Shuka Minerals is making bold strides toward acquiring and reviving the Kabwe zinc mine in Zambia, backed by a newly appointed board steering the process forward.
In a February 14 update, CEO Richard Lloyd reaffirmed the company’s commitment to unlocking Kabwe’s full potential. He highlighted strong backing from potential funders, with various financing options under review. However, he emphasized the importance of strategic budgeting and clear timelines to ensure long-term success.
Fast-Tracking the Acquisition
Shuka’s planned takeover of Leopard Exploration and Mining (LEM) follows a conditional share purchase agreement (SPA) signed in December 2024. Since early 2025, Shuka’s team and legal advisors have been working diligently to finalize outstanding conditions, with completion targeted for March 2025.
To accelerate post-acquisition redevelopment, technical teams and key consultants have already conducted:
✅ On-site visits to Kabwe to assess high-grade zinc mineralization and small-scale mining activity.
✅ Stakeholder meetings in Lusaka and South Africa to engage with existing and potential financiers.
✅ Regional discussions in Southern and East Africa covering both the Kabwe project and Shuka’s existing Rukwa coal mining operations in Tanzania.
Assessing Kabwe’s Potential
During a successful site visit, CEO Richard Lloyd observed high-grade zinc deposits from outcropping formations. Samples have been sent to ALS Zambia’s laboratory in Lusaka for grade and metallurgical testing, with results expected later this quarter.
Meanwhile, Shuka’s technical team is conducting a deep dive into historical geological, geophysical, and mine development data to refine its strategy. The company is finalizing an agreement with GeoQuest, a Zambia-based firm, to oversee site activities and project planning.
Financing and Strategic Partnerships
Shuka is actively securing funding to:
💰 Meet cash payments owed to LEM shareholders under the SPA.
🛠 Support post-acquisition exploration and development at Kabwe.
As part of its funding strategy, Shuka has an existing agreement with Gathoni Muchai Investments (GMI) for a £500,000 interest-free loan, with £250,000 already drawn and more planned this quarter.
Discussions with AUO Commercial Brokerage and other financial partners across Europe and Africa are ongoing to strengthen Shuka’s capital position.
Expanding Beyond Kabwe
While driving the Kabwe acquisition, Shuka remains actively engaged with its local management team at Rukwa coal mine in Tanzania. Talks with potential operational partners for Rukwa are also progressing.
The Road Ahead
With stakeholder support, strategic financing, and site preparations in full swing, Shuka Minerals is rapidly positioning itself to finalize the Kabwe acquisition and kickstart redevelopment, reinforcing its footprint in Zambia’s mining sector.
Stay tuned for more updates as Shuka Minerals powers ahead in unlocking Africa’s critical mineral potential!
