Shares in Shuka Minerals PLC (AIM:SKA) dropped 16% to 4.38p after the company provided an update on funding for its planned acquisition of Leopard Exploration and Mining Limited (LEM), owner of the Kabwe Zinc Mine in Zambia.
The company said Gathoni Muchai Investments (GMI), which is providing the financing for the deal, expects to transfer an initial US$350,000 to Shuka in the coming days, with the remaining funds due before the end of November.
Shuka added that it remains in close contact with GMI over the transaction timeline and will update the market once the funds are received.
Completion of the acquisition will follow payment of the outstanding cash consideration, along with the issue of consideration shares and warrants to the LEM vendors.
Shuka said the vendors remain supportive of the deal and committed to completing it once the funding is finalised.