A British firm has entered into an agreement to acquire 71 % stake in Great Lakes Graphite which owns mining licences in Homa Bay and Buru Hill rare earth projects in Nyanza region of Kenya.
The UK firm will spend Kshs. 108 million to be paid in three transactions in the deal which will also see Kazera grant an option to Caracal Investments to acquire 20 percent of Great Lakes for Sh118 million.
According to a statement from Kazera, will acquire 51% shareholding in Great Lakes Graphite with 20% going to Caracal with 29% going to current shareholders.
Rare earth minerals are used are used in the manufacture of magnets for electronic vehicles and turbines. Homabay and Buru Hill areas are estimated to contain 65,000 tonnes of cerium, 52,000 tonnes of lanthanum and 18,000 tonnes of neodymium.