The manganese ore produced by the shallow open-pit mine Larisoro had an average manganese concentration of 33.41% over the last six years. An African mining and development business named Marula Mining has announced plans to invest in and purchase a portion of the northern Kenyan Larisoro Manganese Mine. In exchange for an initial 60% commercial interest in the Larisoro Manganese Mine, which has been in operation since 2012, the business signed a legally binding condition sheet with Gems and Industrial Minerals (GIM), a Kenyan operator. With this action, Marula enters the mining industry in Kenya. The ore is processed to yield a product that is sold in Asian markets and contains more than 37% manganese. Marula signed the terms sheet and paid GIM £300,000 by issuing 2.4 million new ordinary shares at a price of 12.5p each. A £200,000 payment is also specified in the agreement, and it is anticipated that they will be signed in mid-March 2024 along with the Commercial and Technical Support Agreements.
Marula’s $1.5 million investment is intended for new machinery, which will boost the mine’s monthly manufacturing of high-grade manganese ore to 5,000–10,000 metric tonnes (t). Subsequent payments to GIM consist of £300,000 following the completion of the initial exploration phase and £750,000 upon the sale of 50,000 metric tonnes of manganese ore. The terms sheet also gives Marula the option to pay GIM an additional £1.25 million in cash or shares to increase its ownership position in the mine to 70%. The objective of this investment is to fortify Marula’s market position and augment manganese production. Jason Brewer, CEO of Marula, remarked We are really confident about this investment in GIM and the Larisoro Manganese Mine after a fruitful site visit that we conducted in late 2023 and a very comprehensive technical examination and analysis.
