Battery metals miner Marula Mining has recently made significant strides by signing a binding term sheet with Kenyan manganese mine operator Gems and Industrial Minerals (GIM) to acquire a 60% commercial interest in the Larisoro mine, located in Samburu County, Kenya.
The Larisoro mine, operating since 2012, boasts shallow open-pit operations. Over the years, manganese ore grades have demonstrated a range from 18.82% to 55%, with an average grade of 33.41% from 2018 to 2024.
Presently, the mine crushes and screens ore to produce a 37% manganese saleable product, primarily targeting Asian markets.
According to the term sheet, Marula plans to invest $1.5 million in purchasing new mining and processing equipment for the mine, contingent upon GIM’s execution of technical support and commercial agreements.
This investment is expected to facilitate an increase in production to between 5,000 and 10,000 tonnes of saleable high-grade manganese ore within the next three to six months.
Furthermore, additional agreements are anticipated to be finalized by mid-March. Upon signing the term sheet, a payment of £300,000 was made to GIM, facilitated through the issuance of 2.4 million new ordinary shares.
Subsequent to signing the technical support and commercial agreements, Marula will pay GIM £200,000 in cash or shares, with an additional £300,000 upon completion of an initial exploration program.
A final payment of £750,000 will be made once the mine achieves sales of 50,000 tonnes of manganese ore.
The term sheet also includes a 12-month option for Marula to increase its commercial interest in the Larisoro mine to 70%, contingent upon a payment of £1.25 million in cash or shares.
Marula has conducted a detailed due diligence program, supported by independent assay reports, affirming the high-grade nature of the manganese mining operation.
Discussions are underway with a potential European offtaker for 100% of the mine’s saleable product.
Marula anticipates the payback of its initial investment within the next 12 to 15 months. The Larisoro mine currently comprises three shallow open pits extending over a cumulative length of about 600 meters.
Site inspections suggest that manganese mineralization remains open down-dip and along strike.
CEO Jason Brewer views this investment as a strategic move in East Africa and the battery metals sector. Marula, primarily listed on the UK-based Aquis Stock Exchange, is contemplating a dual listing on the Nairobi Stock Exchange in the future, marking its first venture into Kenya.
