Kazera Global, the AIM-quoted investment company focused on heavy mineral sands and diamond assets in South Africa's Northern Cape, has agreed full and final settlement of the $1.32 million claimed by Fujax South Africa under prepayment arrangements struck with subsidiary Whale Head Minerals in December 2024.
Kazera will pay Fujax $1 million in total, split evenly between cash and shares.
The $500,000 equity portion will be settled in new shares priced at the lower of 2p or the 10-day volume-weighted average price, expected by 30 September, with Fujax barred from selling more than 25% of its holding in any rolling 30-day period after an initial 30-day lock-up.
The cash half will be paid via five monthly instalments of $60,000 from the end of October, followed by a $200,000 balancing payment by 1 March 2027.
The settlement follows the grant of the Mining Right over Sea Concession 2A, announced 2 September, and prompts the Board to consider raising a minimum of £500,000 in new equity to strengthen the balance sheet ahead of cashflow from WHM's operations.
Kazera has opted to use AIM's newly introduced Capital Access Window mechanism, suspending trading in its shares from 7.30am today while it gauges investor demand and finalises terms.
"The Fujax settlement removes another significant legacy liability on terms which we believe are very favourable to Kazera", said interim chief executive Richard Jennings.
The fundraising, if it proceeds, will require shareholder approval at a general meeting expected to be convened for 10am on 21 September.
