Hebei Xinjian buys loss-making Namibian tantalite company from Kazera


Hebei Xinjian Construction has bought the loss-making Namibian company African Tantalum (Aftan) from Kazera Global for US$13m.

Aftan operates the Tantalite Valley Mine, about 30 km from Warmbad town in southern Namibia.

The company recorded a N$6,963,023 loss before tax on 30 June 2022.

The agreement signed before Christmas entails that Hebei Xinjian buys shares in African Tantalum for US$3,642,207 and then pays an intercompany loan amounting to US$9,357,793.

Hebei Xinjian has already paid US$642,207, while US$500 000 should be paid before the end of December 2022. The other US$2,5m should be paid by the end of January 2023

The US$9,357,793 will be paid in instalments from April 2023 until December 2023. In case of any outstanding amount, Hebei will have to pay back at an 8% interest per annum.

Hebei Xinjian will only take complete operational control after making full payment for the loan and the share sale by the end of 2023.

Kazera says the sale will enable the company to exit an investment for an attractive return and to invest in the Diamond and Mineral Sands projects to improve the cash flow profile without raising additional capital.

According to Kazera, the sale removes the risks associated with constructing a new processing plant and recommissioning the mine in the current uncertain market environment.

The 100% take-over announced before Christmas came five months after Hebei Xinjian had acquired a 49% stake in a US$7,5m non-dilutive investment deal with Kazera.

Kazera chief executive officer Dennis Edmonds said they have confidence in Hebei Xinjian's ability to progress the mine through the development stage since they had been working together since July 2022.

Edmonds also said the deal represents a real milestone for Kazera as the first realisation of returns from an investment in line with the strategy.

"We see major opportunities in the present environment and look forward to delivering sustainable growth to the benefit of all our stakeholders in the near term," Edmonds said.

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