(Sharecast News) - Shuka Minerals announced on Thursday that it has received final regulatory approval from Zambia's Competition and Consumer Protection Commission for its acquisition of Leopard Exploration and Mining, paving the way for the completion of its purchase of the Kabwe Zinc Mine.
With the authorisation, all regulatory conditions for the deal had now been satisfied.

The AIM-traded miner said it had agreed an extension of the transaction completion deadline to 30 June to allow time for finalising an amended share purchase agreement and related funding arrangements.

Under revised terms, the $3m share consideration would be settled at completion through the issue of 28.64 million new Shuka shares at 7.737p each, representing a 10% discount to the agreed reference price and a premium to the current market price.

The new shares would constitute approximately 29.99% of the enlarged share capital.

In lieu of any deferred share payments, Shuka said it would issue the vendors an additional two million warrants exercisable at 12.5p until 31 December 2027, subject to a cap on total voting rights held post-exercise.

To finance the remaining $1.35m cash consideration, Shuka said it had agreed terms on a £1.5m non-dilutive, unsecured facility, subject to due diligence and completion of definitive agreements.

The company said further updates would be provided in due course.

"This is a huge milestone and one which the market, shareholders and all stakeholders in Shuka have been waiting for," said chief executive officer Richard Lloyd.

"I must thank the entire team for their diligent efforts in getting us to this point, and we look forward to completing this acquisition and thereafter progressing the Kabwe and Rukwa projects to realise their full potential."

At 1030 BST, shares in Shuka Minerals were down 5.15% at 6.17p.

Reporting by Josh White for Sharecast.com.

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