Shuka Minerals PLC (AIM:SKA) has conditionally raised £750,000 from strategic investor Menel Energy and Resources at a substantial premium, while securing more time to repay an approximately £1.59 million shareholder loan.
Menel subscribed for 18.75 million shares at 4p each, representing a 53.9% premium to Shuka’s closing price before the announcement. The investment will be completed in two £375,000 tranches, with the first received and the second expected by 31 August.
Following completion, Menel will own around 12.3% of the enlarged company and have the right to nominate a non-executive director. It will also receive warrants over another 18.75 million shares at 8p, exercisable until July 2029.
Shuka said the funds would be used for payments to Gathoni Muchai Investments, drilling at its Kabwe project and working capital. Separately, the final repayment date for its GMI loan has been extended to 31 December 2027, with the outstanding balance carrying interest at 8% a year.
Chief executive Richard Lloyd said Menel brought “extensive in-country experience and relationships” alongside access to African capital.
"I am delighted to welcome Menel Energy and Resources as a strategic investor and significant shareholder," chief executive Richard Lloyd said.
He added: "The 2026 drilling programme has continued to demonstrate the potential of the project, with substantial mineralised intersections and preliminary XRF readings indicating zinc grades above the historical average for the deposit.
"I believe that, as we continue to advance Kabwe, an asset from which more than 14.5Mt of ore has historically been mined and which has an existing remaining resource of over 5.7Mt, including 700Kt of zinc, there is scope for the market to better reflect the underlying value of the asset."
In London, Shuka shares were up 10.7%, changing hands at 2.88p
