13th Jan 2026 12:54
(Alliance News) - Shuka Minerals PLC said on Tuesday it will raise GBP3 million to help fund its projects in Zambia and Tanzania, and indicated it is on track to conclude its acquisition of Leopard Exploration & Mining Ltd in Zambia.
The Africa-focused mine operator and developer announced that it has raised GBP1.0 million through the placing of 25.0 million new shares at 4 pence each.
The shares placing was undertaken by Shuka's broker Tavira Financial Ltd, and it will represent about 21% of its issued share capital.
Shuka also said participants in the placing will be issued one warrant for each placing share, exercisable at 8p apiece, raising an additional GBP2 million.
Proceeds from the share placing will be used to develop Leopard Exploration's Kabwe Zinc Project and for general working capital purposes. Also, proceeds will be used for the Rukwa coal project in Tanzania.
Shuka also said it has received payment of GBP815,000 from Gathoni Muchai Investments Ltd to help fund its acquisition of Leopard Exploration.
Late in June last year, Gathoni Muchai agreed to increase its loan to Shuka by GBP1.5 million to GBP2 million.
The GBP815,000 payment brings the total funds drawn under the Gathoni Muchai loan to GBP1.115 million, with a further GBP385,000 remaining undrawn.
Shuka said it is arranging payment to the Leopard Exploration vendors of the balance of cash, amounting to USD1.05 million, which will be settled by issuing 22.27 million shares and 1.55 million warrants.
Following receipt of the Gathoni Muchai loan, Shuka expects to shortly complete the acquisition of a 100% interest in Leopard Exploration.
"I am delighted to announce we now have funding in place not only to complete the acquisition of Kabwe, but also to commence work immediately on the ground in both Zambia and Tanzania," Shuka Chief Executive Officer Richard Lloyd said.
Shares in Shuka slumped 26% to 4.08p on Tuesday afternoon in London, but they rose 10% to ZAR1.54 in Johannesburg.
By Artwell Dlamini, Alliance News senior reporter South Africa
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