Kazera Global PLC (AIM:KZG) (Kazera Global PLC (AIM:KZG)) shares jumped 38% to 2.18p after the company secured approval for a mining right over its Sea Concession 2A heavy mineral sands project in South Africa’s Northern Cape.
The company described the approval as a transformational development for its heavy mineral sands business and a key step towards developing 2A with strategic partner South Africa AT Investments (SAI).
Once the mining right is formally executed, a further US$1.75 million will become payable to Whale Head Minerals and SAI will expand its joint operations into the concession.
Commercial production is targeted for the first quarter of 2027, ramping up to at least 10,000 tonnes of concentrate per month by the second quarter. SAI has already begun shipping 30 containers of construction equipment from China.
The 3,095-hectare concession has been granted for an initial 10-year term and covers minerals including garnet, monazite, zirconium and rutile.
A technical report published last month identified around 1.31 million tonnes of economic heavy minerals within just 1.42% of the licence area, with an indicative gross in-situ value of US$369.3 million. The remaining 98.58% has been classified as a geological target estimated to potentially contain another 265.2 million tonnes of heavy mineral sands.
Chief executive Richard Jennings called the approval “the most significant milestone in Kazera's history” and said it gave the company the regulatory platform to begin unlocking the project's potential.
Formal execution and registration of the mining right are expected to be completed within the next few weeks.
