Shuka Minerals (AIM:SKA), the AIM and AltX-listed African mine operator and developer, has conditionally raised gross proceeds of £750,000 through a subscription with Zambian investment firm Menel Energy and Resources.
Menel is subscribing for 18.75m new shares at 4p each, a premium of approximately 53.9% to the previous closing price of 2.6p.
The first tranche of £375,000 has been received in cleared funds, with the second tranche expected by 31 August.
Following completion, Menel will hold approximately 12.3% of the enlarged share capital and gain the right to appoint a non-executive director, expected to be Tanda Syamunyangwa, chief executive of Kanona Power.
Menel previously invested roughly US$6.94m in GoviEx Uranium for a 13.6% stake.
Alongside the subscription, Shuka has amended its loan facilities with Gathoni Muchai Investments, extending the final repayment date on the roughly £1.59m outstanding to 31 December 2027.
The company will pay GMI US$250,000 by 31 July, reducing the loan principal by US$300,000, while the remaining balance will carry 8% annual interest.
GMI also receives a restructuring fee of £119,054.32, settled through 2.98m new shares at 4p each.
Proceeds from the first subscription tranche will fund payments to GMI, with the balance directed toward Shuka's drilling programme at its Kabwe project and general working capital.
Chief executive Richard Lloyd said the resulting valuation remains "approximately 1% of the existing Phase 1 NPV of Kabwe", an asset with more than 14.5m tonnes historically mined and a remaining resource including 700,000 tonnes of zinc.
News Intelligence what this means for the company
Shuka Minerals raised £750,000 from Zambian investor Menel Energy and Resources at a 53.9% premium to the prior closing price, with Menel taking a 12.3% stake and board seat. Simultaneously, the company extended its £1.59m loan from Gathoni Muchai Investments to end-2027, paying down US$300,000 of principal and issuing shares to cover a restructuring fee. The capital will fund GMI payments and drilling at Kabwe, where CEO Richard Lloyd notes the current valuation sits at roughly 1% of the Phase 1 project NPV.
The raise provides near-term liquidity to continue Phase 1 drilling and service debt, but at a dilutive cost: Menel's 12.3% stake and the share issuance to GMI (2.98m shares at 4p) materially increase share count. The extended loan maturity to end-2027 buys time but locks in 8% interest on the remaining balance, deferring refinancing risk rather than resolving it. Execution risk on the Kabwe resource upgrade (planned for late 2026) remains the key value driver.
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