Kazera Global (AIM:KZG), the AIM-quoted investment company, has proposed a shareholder return programme covering roughly 80% of the net cash proceeds from its $10.5 million settlement with Hebei Xinjian Construction CC over African Tantalum (Pty) Ltd.
The company will trade ex-entitlement from 31 July, with 3 August set as the record date for determining which shareholders qualify.
To lock in that entitlement regardless of future share sales, the board intends to create a separate contingent value right (CVR) tied to each qualifying shareholder's holding at the record date.
Payment structure depends on Hebei's settlement route.
If Hebei exercises its option to settle early at a discounted $9 million by 31 December, qualifying shareholders would receive a single distribution in early 2027.
If Hebei instead follows the instalment schedule running to December 2029, shareholders would receive three distributions, in early 2028, 2029 and 2030, each representing about 80% of net proceeds received the prior year.
The remaining proceeds will support working capital and investment, a consideration sharpened by Kazera's recent agreement under which SAI will fund all capital expenditure, operating costs and working capital at Whale Head Minerals, the company's South African heavy mineral sands asset.
"Our shareholders stood by the Company throughout the Aftan recovery process. We believe they should now be the shareholders who benefit from it," said Richard Jennings, Kazera's interim chief executive.
The company is finalising CVR terms with its legal advisers, nominated adviser and registrar, with further announcements to follow on implementation timetables and distribution mechanics.
News Intelligence what this means for the company
Kazera is returning roughly 80% of its $10.5 million Aftan settlement to shareholders via a contingent value right (CVR), locking in entitlements at the 3 August record date. The move rewards long-term holders through the arbitration process and signals confidence in the settlement's near-term cash flow—an initial $500,000 arrived in July—while retaining 20% for working capital at a moment when SAI has committed to fund all capital and operating costs at Whale Head Minerals, reducing the company's immediate cash burn.
The return programme converts a dormant legacy dispute into tangible shareholder value and removes uncertainty around how Aftan proceeds would be deployed. However, the distribution timeline hinges on Hebei's settlement route: early 2027 if Hebei pays $9 million by year-end, or three tranches through 2030 if instalments continue—a material difference in timing that leaves near-term cash visibility conditional on Hebei's choice.
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