Europa Metals proposes reverse takeover of Marula Africa Mining

(Alliance News) - Europa Metals Ltd announced on Thursday it intends to buy Marula Africa Mining Holdings Ltd in a reverse takeover.

The company has been a cash shell since it sold Europa Metals Iberia SL in November last year. Europa Metals Iberia holds the Toral project in the Leon Province, Northern Spain, to Denarius Metals Corp.

Europa's proposed acquisition of Marula Africa also includes Marula Africa's near-term in-production assets in Kenya, Tanzania, Burundi and South Africa in exchange for shares in Europa at a ratio of 9 new shares in Europa for one share in Marula Africa.

Marula Africa is a wholly-owned UK subsidiary of Marula Mining PLC, which is listed and trades on the AQUIS Stock Exchange in London and South Africa's A2X Markets. Marula's projects are focused on battery and critical metals.

Europa said the transaction is subject to due diligence, and shareholder and regulatory approvals.

The costs of undertaking the proposed deal will be funded by Marula and, if completed, would constitute a reverse takeover, said Europa, noting that it will apply for re-admission of its shares to the AIM market of the London Stock Exchange.

Europa said it will also be party to a bridge funding facility, which is being extended to Marula and has agreed to take on the obligations of Marula.

In a separate statement, Marula Mining confirmed on Thursday that it has signed a heads of terms, under which Europa is proposing to acquire Marula Africa.

Marula Mining said it has secured funding structured to align with the proposed Europa acquisition.

Marula Mining signed up to a maximum GBP25 million at-the-market equity facility with Fortified Securities Ltd.

It also said it has entered into a USD2.0 million secured investment agreement with RiverFort Global Opportunities PCC Ltd.

Europa warned that it will seek to cancel trading of its shares on AIM, which may also affect the listing on the Johannesburg Stock Exchange, if the proposed transaction does not proceed and in the absence of an alternative reverse takeover.

Shares in Europa were up 18% at 45 rand cents late on Thursday morning in Johannesburg.

In London, Marula Mining shares were untraded at 3.50 pence each on the Aquis Stock Exchange, having last traded on June 30.

By Artwell Dlamini, Alliance News senior reporter South Africa

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