Kazera Global plc, an AIM-listed investment company, has executed a binding N$173.15 million (US$10.5 million) settlement agreement with Hebei Xinjian Construction CC, resolving a long-running arbitration dispute involving African Tantalum (Pty) Ltd (Aftan), Kazera’s former mining asset in Namibia.
The settlement process will begin immediately, with an initial payment of N$8.25 million (US$500,000) currently progressing through Namibian banking and exchange control processes.
Under the terms of the agreement, the initial payment must be successfully remitted to Kazera by 6 July 2026. Should the funds fail to clear exchange control requirements by that date, the agreement will automatically lapse and Kazera will revert to enforcing its original arbitration award.
“This is a significant and highly positive milestone for Kazera and its shareholders. We have executed a definitive settlement agreement in respect of the Aftan arbitration, which provides a clear pathway to significant further value recovery,” said Kazera Interim Chief Executive Officer Richard Jennings.
The dispute arose after Hebei defaulted on payments following its December 2022 agreement to acquire Aftan from Kazera. Although a Namibian arbitration tribunal ruled in Kazera’s favour in May 2025, awarding the company N$196.23 million (US$11.9 million) plus interest, the board opted for a structured settlement to avoid the costs and uncertainties associated with prolonged enforcement proceedings.
The payment schedule extends to December 2029 and is expected to generate total cash recoveries of approximately N$240.75 million (US$14.6 million), including the N$67.61 million (US$4.1 million) already paid by Hebei. This exceeds the original 2022 sale price of N$214.37 million (US$13 million).
“Whilst we remained highly confident in our legal position, the Board has always been focused on achieving the best practical commercial outcome for shareholders. We believe this agreement provides enhanced certainty, meaningful downside protection and an attractive commercial outcome when balanced against the uncertainty, timing and cost associated with alternative recovery routes,” Jennings said.
The settlement comprises N$115.43 million (US$7.0 million) in shareholder loan repayments and N$57.72 million (US$3.5 million) relating to the share sale.
Hebei also retains an option to settle the debt early through a discounted lump-sum payment of N$148.41 million (US$9.0 million) if the full amount is paid by 31 December 2026.
To safeguard its position, Kazera will retain 100% ownership of Aftan until specific payment milestones are achieved. Ownership will transfer to Hebei in four staggered tranches of 25% each, beginning once cumulative payments reach N$117.49 million (US$7.125 million).
Kazera also retains a range of protections, including automatic unwind rights and share pledges, should Hebei default on any two payments.
Meanwhile, the company has indicated that approximately 80% of the net cash proceeds received under the settlement will be returned to shareholders.
The board expects to announce details of the distribution mechanism and the relevant record date during July 2026.
“In line with this, we are committed to returning a significant proportion of the net cash proceeds received under the settlement to shareholders, whilst also ensuring the company is appropriately funded to progress our flagship Whale Head Minerals asset, our partnership with REMI at Walviskop, the key 2A Mining Right and other value-accretive growth opportunities,” Jennings said.
The remaining proceeds will be used to strengthen working capital and advance Kazera’s broader portfolio of Namibian mining assets.
