Marula Mining PLC on Tuesday said it had secured a mineral dealer’s trading licence for manganese ore in Kenya.
In March, the African-focused mining and development company entered into an agreement with mine operator Gems and Industrial Mineral Ltd, to secure commercial interests in the Larisoro manganese mine in northern Kenya.
Marula has since confirmed on Wednesday the commencement of its $1.8 million exploration programme.
And the two companies are to sign documentation relating to technical support and commercial agreements by the end of the month.
Meanwhile, work is being carried out over the coming weeks by locally sourced specialists to refurbish and upgrade existing processing equipment at the site.
This precedes a planned investment of $1.5 million to purchase new equipment that will increase production capacity.
Chief Executive Officer Jason Brewer said: ‘We believe we are on track to have the mine operating at the initial planned levels of up to 5,000 tonnes per month of saleable product in quarter two 2024, which we anticipate will rise to 10,000 tonnes per month once new equipment has been acquired.’
Initial sales of manganese will be to one of GIM’s existing Asian-based clients alongside a trial shipment of 2,000 tonnes to be delivered in the second quarter to an offtake agreement partner.
Marula shares were down 2.8% to 8.63 pence each on the Aquis exchange on Wednesday afternoon.
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