Kazera Global PLC (AIM:KZG) shares rose 32% to 1.25p after the investment company executed a definitive settlement agreement with Hebei Xinjian Construction, resolving its disputed Aftan tantalum and lithium asset.
An initial $500,000 payment is due by 6 July, and the plan is to distribute approximately 80% of recovered proceeds to shareholders.
The settlement provides Kazera with $10.5 million payable through a structured schedule ending December 2029, offering certainty over the alternative of enforcing an arbitration award granted substantially in its favour in May 2025.
Combined with approximately $4.1 million previously received, the total contractual recovery reaches approximately $14.6 million, exceeding the original $13 million fixed consideration under the 2022 sale agreement for Aftan.
Hebei has the option to settle early for $9 million if paid in full by 31 December, creating potential for accelerated cash realisation.
Ownership of Aftan transfers to Hebei in four 25% tranches linked to payment milestones, with Kazera retaining share pledges and acceleration rights providing significant downside protection.
The initial $500,000 payment will materially reduce near-term funding requirements and strengthen working capital flexibility. Kazera intends to announce shareholder return details, including the proposed distribution mechanism and record date during July.
Interim chief executive Richard Jennings described the settlement as a significant milestone, balancing legal confidence against the uncertainty, timing and cost of enforcement proceedings.
He positioned the agreement as consistent with the board's broader strategy of transitioning Kazera towards a disciplined investment company model focused on monetisation and capital discipline.
The settlement draws a line under legacy issues and allows management focus to shift to advancing flagship assets, including Whale Head Minerals, the REMI partnership at Walviskop and the 2A Mining Right. A Competent Persons Report on 2A is expected to be completed and published in the near term.
