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(Sharecast News) - Shuka Minerals said on Friday that completion of its proposed acquisition of Leopard Exploration and Mining and the Kabwe zinc mine in Zambia had been delayed, after funding from its lender was deferred into early January.
The AIM- and AltX-listed company said it settled an initial tranche of consideration on 19 November, securing an effective 22.2% interest in Leopard Exploration and Mining and the Kabwe Zinc Mine in central Zambia.
Under the terms of the transaction, further tranches were due to be paid following receipt of funds from Gathoni Muchai Investments under an increased loan facility agreed on 30 June, with Shuka set to increase its stake to 49.9% before making a final payment to acquire 100% of the target.
Shuka said Gathoni Muchai Investments had now verbally advised that the funds would be provided in the week of 5 January.
As a result, the company agreed with the vendors to extend the long-stop date for completion of the acquisition to 15 January.
It said a further update will be made in due course.
At 1031 GMT, shares in Shuka Minerals were up 8.49% at 4.88p.
Reporting by Josh White for Sharecast.com.
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