Kazera Global PLC (AIM:KZG) shares dropped around 9% in Wednesday morning’s deals after the small-cap miner told investors that samples from the Walviskop project in South Africa showed raised levels of radioactivity.
The company, in a statement, said that it has now engaged with the national nuclear regulator in the country to determine whether any specific permitting is required for it to proceed.
"Whilst the presence of radiation in HMS samples may be seen by some as an issue, it is a situation that is not uncommon in the Heavy Mineral Sands sector and has, equally importantly, helped highlight the presence of higher value minerals in our HMS samples,” said chief executive Dennis Edmonds.
“The detailed baseline study that has been conducted and other associated work will allow us to seek clarification on permitting, as well as tailor our operations and inform our approach to environmental management and rehabilitation.
“Whilst on a basic level any delay is frustrating, the testing and sampling work we have undertaken has highlighted the economic case for separation as it will ultimately result in the sale of higher value HMS constituents, rather than a lower price for the basic HMS product.”
Kazera additionally said that the pilot plant at the project was showing very promising results and the data from the plant is forming the basis for informed strategic discussions with potential offtake partners.
In London, Kazera shares were down 9.09%, changing hands at 0.75p and valuing the company at just under £7mln.