Shuka Minerals gets interim go-ahead for Leopard acquisition

(Sharecast News) - Shuka Minerals announced on Wednesday that it has received interim unconditional authorisation from Zambia's Competition and Consumer Protection Commission (CCPC) to proceed with its planned acquisition of Leopard Exploration and Mining (LEM), the owner of the Kabwe Zinc Mine. The AIM-traded firm said the approval, granted by the CCPC's technical committee, allows it to advance towards completion of the transaction, pending formal ratification by the full Board of Commissioners.

It said the CCPC found no significant competition concerns under the relevant provisions of Zambia's Competition and Consumer Act.

The acquisition, structured as a share and cash-based deal, would give Shuka full ownership of LEM and the Kabwe Mine, located in central Zambia.

It also represented the final regulatory hurdle for the transaction, the board noted.

"Receipt of the interim unconditional authorisation from the technical committee of the CCPC is another major milestone for us," said chief executive officer Richard Lloyd.

"This authorisation allows us to now move ahead and finalise the acquisition of Leopard Exploration and Mining and the Kabwe Zinc Mine, whilst we wait for the board of commissioners of the CCPC to formally meet and provide the final approval, and will allow us to now proceed with securing the proposed funding, expected to be on a non-dilutive basis, to allow us to complete the cash-based payment in terms of the acquisition."

At 1341 BST, shares in Shuka Minerals were up 27.5% at 5.1p.

Reporting by Josh White for Sharecast.com.