9th Mar 2026 22:45
(Alliance News) - Marula Mining PLC on Monday provided updates on several funding deals and announced a copper concentrate purchase and sale agreement, as it works to publish its 2024 financial report.
The copper concentrate purchase and sale agreement is with a New York-based finance and trading company specialising in metals, minerals and raw materials, Marula said.
Under the agreement, Marula will sell up to 2,500 tonnes per month of copper concentrate from its Kinusi Copper Mine in Tanzania over 12-months, subject to agreed product specifications. Pricing is linked to prevailing LME copper prices and payable percentages based on final assay results.
The agreement provides for payment via a letter of credit of up to USD8 million from a mutually agreed bank. Up to 60% of the letter of credit may be drawn before shipment to cover mobilisation and production costs for the supply of copper concentrate.
As for its manganese projects, the Africa-focused mining and development company said it is seeking funding to start production and sales at its Tonto Tshipi Manganese operations.
Elsewhere, Marula said production has been delayed at the Derdepoort Manganese Mine as it has not yet paid the GBP1.0 million required to start operations
"The company's ability to operate these assets at planned levels, and to achieve positive operating cashflow on a sustained basis, is dependent on meeting its forecast production and sales levels, and securing funding. The company continues to review its available funding and working capital," Marula said.
Marula has also provided an update on its agency framework contract with Baosteel Resources South Africa (Pty) Ltd. The deal outlines the purchase and sale of manganese from the Kilifi Manganese Processing Plant located in the Tezo Area, Kilifi County in Kenya.
Under the terms of the Agreement, Baosteel will act as an agent to exclusively sell the company's manganese ore from the Kilifi Plant. Under the agreement, deliveries beginning in May 2026 are to be implemented through individual purchase contracts, none of which have been signed.
Despite major delays in deliveries, the agreement remains valid for the next five years.
In the Middle East, Marula continues discussions with A1 Funds and certain Mauritius-incorporated funds backed by Saudi-based sovereign interests in respect of potential investments of up to USD25.0 million. Marula expects transactions with A1 funds to be finalised early in the second half of 2026, though says there can be no guarantee.
Regarding existing loan agreements, Marula has revised its GBP1.5 million subordinated, unsecured interest-free and non-convertible loan from major shareholder Gathoni Muchai Investments Ltd.
GMI has agreed to make available a further amount of GBP1.0 million under the loan, which is immediately available to put towards general working capital requirements.
Marula has drawn GBP1.7 million under the loan to-date. The company is proposing an additional drawdown of GBP500,000 to part fund costs associated with its recently announced manganese mines and processing plant acquisitions in South Africa and other activities in Southern Africa.
Marula has access to additional funds through its GBP25 million, 12-month at-the-market facility with Fortified Securities Ltd, should its shares resume trading.
Marula shares were suspended after it delayed the publication of its 2024 annual report, which it expects to complete in due course.
Finally, Marula said drawings under its EUR6 million structured non-recourse facility with Muchai Mining Kenya Ltd were not made by December 31 as anticipated.
"As a result of the prolonged delays with this transaction, and the company's concern and frustration over the lenders' ability to complete the transaction under the existing structure, the lender and its advisers and the company's advisers commenced a restructuring of the transaction terms and a revised agreement is currently under negotiation," Marula said.
"Whilst there can be no certainty that the facility will complete or that the company will draw upon these funds, the company is of the opinion that alternative funding has since been secured to address the ongoing delays and completion risk of this facility," the company added.
By Aidan Lane, Alliance News reporter
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.
Related Shares: