By:Africanminingmarket

Marula Mining (AQSE: MARU A2X: MARU), an African-focused mining and development company, announces that it is finalising negotiations with a Chinese battery manufacturer and its current lithium offtake partner, for the establishment of a new joint venture partnership (the "Joint Venture") at the Blesberg Lithium and Tantalum Mine located in the Northern Cape Province in the Republic of South Africa ("Blesberg" or the "Project").

The Company also announces a subscription of gross proceeds of £750,000 under the AUO Commercial Brokerage LLC Subscription Agreement ("AUO") as announced on 31 January 2023 and advanced through a UK based investment firm.

These funds are to be used to complete the installation and commissioning of the Tomra COM XRT 1200 Ore Sorter ("Ore Sorter") at Blesberg, to fund costs associated with the current mining operation activities of the Company in Tanzania, Kenya and South Africa, and for general working capital needs of the Company. It is anticipated that the funds will be received in the Company's bank account in the United Kingdom on 24 October 2024 and 15,000,000 new ordinary shares will be issued at a price of 5 pence per share ("New Shares").

Blesberg Update - Proposed Joint Venture

The proposed Joint Venture is planned in respect to the commissioning, financing, and operation of a lithium acid leaching plant to produce an intermediate lithium product for use in the manufacture of lithium batteries and other high value lithium products

Discussions have been ongoing between the parties for the past several months, extensive testwork has been undertaken in China on material produced from Blesberg and detailed engineering and process design work has also been completed along with detailed operating and capital costs reviews and economic analyses for the operation of a lithium acid leaching processing plant ("Lithium Sulphate Plant"). The Company expects the Joint Venture documentation to be formally completed in Q4 2024, with the plant anticipated to be commissioned in H2 2025, and sales of a high-value lithium sulphate to follow.

Highlights:

·      The Joint Venture proposed to be established between the Company, its offtake partner and a Chinese battery manufacturer is for the production of a high value lithium intermediate product at Blesberg

·      The planned Lithium Sulphate Plant at Blesberg would aim to produce 2,000 tonnes per annum ("tpa") of a high-grade and high-value lithium product from a spodumene head-feed grade of >3.5% Li2O and sizing of 3mm to 5mm

·      Spodumene material from Blesberg has already been delivered to the Chinese battery manufacturer, who conducted extensive metallurgical test work in H1 2024 to assess the viable extraction of the spodumene material to produce a high-grade and high-value lithium product

·      The proposed Lithium Sulphate Plant will be located on the existing permitted mining area at Blesberg

·      Spodumene ore from conventional open pit mining operations will be fed to the planned Lithium Sulphate Plant using material from the existing crushing, screening, XRF and XRT ore sorting and processing facilities on site

·      The preliminary design work and metallurgical flowsheet for the Lithium Sulphate Plant has been completed based on the test work that was undertaken in China on spodumene ores  delivered from Blesberg

·      The decision to proceed with the Joint Venture was based on agreement between the Company, its offtake partner, and the Chinese battery manufacturer that the variability in spodumene ore prices, along with logistical costs and challenges, made it more profitable for all parties to beneficiate the spodumene ore at Blesberg to produce an intermediate lithium product for use in the manufacture of lithium batteries and other high value lithium products

·      The proposed establishment of the Joint Venture along with the commissioning, financing, and operation of a lithium acid leaching plant, is firmly in line with the Company's strategy to become one of Africa's first vertically integrated mine-to-market company, that is able to meet the growing global market needs by producing lithium, other battery metals and  ultimately supplying battery grade material to end users in Europe, Asia and North America

·      The Joint Venture will not only lead to a substantial increase in lithium-based revenues from Blesberg but also align the operation with the South African government's strategy of developing higher mineral value chains in South Africa

·      Formal documentation of the Joint Venture is expected to be completed in the current quarter and work anticipated to commence on the Lithium Sulphate Plant in H1 2025

·      Production and sales of high-grade spodumene ores and other by-product materials will continue whilst the work continues on the Joint Venture

Issue of Equity - Subscription Share

The Company has agreed to issue 15,000,000 new ordinary shares at a price of 5.00 pence per share pursuant to the AUO Subscription Agreement as announced on 31 January 2023 and as amended and announced on 8 February 2024

The subscription proceeds will be used:

-      to complete the installation and commissioning of the Ore Sorter at Blesberg,

-      to fund costs associated with the current mining operation activities of the Company in Tanzania, Kenya and South Africa, and

-      for general working capital needs of the Company.