LONDON: Marula Mining (AQSE: MARU), an African focused mining and development company, has entered into an export logistics agreement with Scan Global Logistics Group’s (SGL Group) Kenya-based subsidiary, Scan Global Logistics Kenya Limited (SGL Kenya), for the transportation and export of manganese ore from the Larisoro Manganese Mine located in Samburu County in Northern Kenya.
Under the terms of the Logistics Agreement, SGL Kenya will manage and oversee all aspects of the ore transportation and shipping process, including the loading and railing of containers to the port of Mombasa, export booking process, customs clearance, and all port-related processes, sea freight and shipping arrangements.
In addition, the Company has secured a revolving KES 12.5 million line of credit (approx. US$100,000) from SGL Kenya under the Logistics Agreement which will be used to manage costs and its working capital during the sale and export of manganese ores during the term of the Logistics Agreement.
Highlights:
· key logistics and export and shipping agreement signed with SGL Kenya
· SGL Kenya will manage the complete process of transportation and shipping of manganese ores from the Larisoro Mine on behalf of the Company
· the Logistics Agreement will see SGL Kenya manage and oversee all aspects of the manganese ore transportation process from the loading of wagons and containers in Nairobi to the export booking process, customs clearance and port-related and shipping processes in Mombasa
· loading of manganese ore by SGL Kenya is scheduled to commence by end of June 2024
· SGL Kenya is part of the SGL Group, which has a global presence in the logistics and freight forwarding industry across all six continents and extensive experience and knowledge to deliver comprehensive logistics solutions
· the Logistics Agreement is in addition to the three key operating contracts recently announced by the Company in the announcement dated 29 May 2024 and which included the transportation of the manganese ore from the Larisoro Mine to Nairobi by a local Kenyan owned transportation company
· the Company has also secured a KES 12.5 million (approx. US$100,000) line of credit from SGL Kenya to assist the Company with its export and shipping costs and general working capital requirements during the export sales and shipping process
Jason Brewer, CEO of Marula Mining, commented: “We are pleased to have entered into this agreement with Scan Global Logistics on this pivotal process for the export of manganese ores from the Larisoro Manganese Mine.
“This collaboration underscores our commitment to efficient operations and sustainable growth in Kenya’s mining sector and Africa as a large. SGL Group’s proven expertise and extensive support further solidify our strategic objectives. The teams are actively working to ensure seamless execution from mine to port and into international markets.
“We have trucks and material moving and our stockpiles are building, so it is an exciting time for us now as revenues are due to flow.
“It has been a busy period for our team on site at the Larisoro Manganese Mine and I look forward to updating shareholders with more news on our activities in Kenya, Tanzania and South Africa.”
Marula Mining secures commercial interest in Kenyan manganese mine