Marula Mining has formalised a deal to acquire an 80% stake in Agarwal Metals and Ores (AMO), which owns the Kilifi Manganese Processing Plant in Kenya.

This share sale and purchase agreement replaces a binding term sheet signed between the companies in July 2024.

Located on 1.31 hectares of freehold land and situated around 60km from the Port of Mombasa, the Kilifi Plant comprises a conventional manganese processing facility with various components for ore processing.

These components include a belt conveyor, fine jaw crusher, jig separator, magnetic separator, pumps, run-of-mine and final manganese product stockpiling areas, tommel scrubber, vibrating feeder and vibrating screen.

The final cash payment of £2m ($2.54m) will be transferred to AMO, along with the issuance of £500,000 worth of new ordinary shares to AMO's major shareholder.

Service and maintenance work at the Kilifi Plant is in progress, before the resumption of manganese ore processing operations.

A recent manganese ore supply agreement ensures a minimum grade of 20% manganese ore feed to the plant.

The agreement between Marula Mining unit Muchai Mining Kenya (MMK) and Kitmin Holdings for the supply of at least 10,000 tonnes (t) of manganese ore per month will enable the Kilifi Plant to operate at full capacity.

Constructed in February 2023, the Kilifi Plant is a fully operational and permitted mineral processing plant. It is capable of beneficiating approximately 10,000t per month of manganese ores.

In July, Marula Mining said it was looking to acquire existing nearby manganese mining operations and mineral rights in an effort to secure a long-term manganese ore supply that will be the feed source to the Kilifi Plant.

The company has interests in multiple high-value mining operations and mine development projects in Africa.