Kazera Global has received a US$750,000 advance payment from South Africa AT Investments, marking the first cash milestone under a production-sharing agreement covering the Walviskop and 2A heavy-mineral-sands assets in South Africa’s Northern Cape.
The payment represents an advance against future sales rather than equity or grant funding. It will be reconciled against production generated under the agreement, linking its value to the delivery of saleable heavy-mineral concentrate from the projects.
South Africa AT Investments to fund project development
Under the agreement, South Africa AT Investments will cover 100% of capital expenditure, mining and processing costs, infrastructure, equipment and working capital required for the operations.
Kazera subsidiary Whale Head Minerals retains ownership of the relevant mining rights and permits. It will receive a continuing 20% entitlement to physical production without contributing to development or operating costs.
South Africa AT Investments will receive the remaining 80% of production in return for providing the project funding, creating a production-sharing structure rather than conventional secured debt. A further US$1.75 million advance is conditional on the grant of the larger 2A Mining Right. The payment has not yet become due and is therefore not included in Kazera’s current liquidity or completed financing.
Additional settlement strengthens near-term liquidity
Kazera has separately received US$500,000 under a settlement with Hebei. Together, the two cash inflows mean the company no longer expects to make additional drawings under an existing shareholder loan provided by interim chief executive Richard Jennings.
The production programme is targeting first output by the end of 2026. The partners have yet to finalise the mine plan, capital budget, production scale and concentrate-grade targets, which will form part of the implementation process. The agreement transfers responsibility for project capital, mining, processing and infrastructure expenditure to South Africa AT Investments while leaving Whale Head Minerals with its mining rights, permits and 20% production entitlement.
