Shuka Minerals Plc, an African focused mine operator and developer, announces that the Company has entered into an agreement with Gathoni Muchai Investments Limited ("GMI"), its second largest shareholder, for an unsecured, interest-free and non-convertible loan of £500,000 (the "GMI Loan").
An initial advance of £150,000 is being made immediately by GMI and will be applied to settle certain creditor balances and for general working capital purposes. GMI have confirmed further advances of the outstanding loan amount will be available during December 2024.
Notwithstanding the provision of the GMI Loan, until such time as the balance of the funds have been drawn, the Company remains reliant on its ability to continue to manage its creditors.
Board Changes Update
Further to the Company's announcement on 30 September 2024, discussions and regulatory due diligence processes are at an advanced stage on a number of proposed new Board appointments. and the Company looks forward to updating the market in due course. In the interim, Noel Lyons, Paul Ryan and Dr Allen Zimbler have been asked, and agreed, to continue on the Board.
Related Party Transaction
GMI are a substantial shareholder in the Company. Consequently, the GMI Loan constitutes a related party transaction as defined by Rule 13 of the AIM Rules for Companies. The Directors of the Company, all of whom are independent of GMI, having consulted with the Company's nominated advisor, Strand Hanson Limited, consider the terms of the GMI Loan to be fair and reasonable insofar as the Company's shareholders are concerned.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR") and is disclosed in accordance with the Company's obligations under Article 17 of MAR.
