TIDMGCAT
RNS Number : 1911K
Caracal Gold PLC
31 August 2021
Caracal Gold plc / EPIC: GCAT / Market: Main / Sector:
Mining
31 August 2021
Caracal Gold plc ('Caracal' or the 'Company')
First Day of Dealings
Caracal Gold plc, the gold producer with operations in East
Africa, is pleased to announce that at 08:00 today its ordinary
shares will commence trading on the Main Market for listed
securities of the London Stock Exchange plc ('LSE') under the
ticker GCAT ('Readmission') with contemporaneous dual listing on
the Frankfurt Stock Exchange (WKN: A2AM01 and Ticker: FSE: 6IK). As
part of the Readmission process, the Company has raised gross
proceeds of approximately GBP5,493,885 through the issue of
638,951,276 Placing Shares completed in two rounds at a placing
price of GBP0.01 per share, implying a market capitalisation of
circa GBP14.5 million on Readmission.
INVESTMENT DRIVERS
-- Cash generative and substantially de-risked
o Forecast low AISC-costs and strong operating margins from gold
sales at 100% owned Kilimapesa Gold Mine.
-- Defined growth strategy
o Phased growth plans and organic development at Kilimapesa as
well as exciting acquisition opportunities under review.
-- Robust market
o Gold market driven by several factors including financial and
geopolitical uncertainties and low interest rates.
-- Proven team
o Board and Management with track records in successfully
developing and operating mining projects throughout Africa.
Robbie McCrae, CEO of Caracal, said, "We are delighted to
commence trading on both the London and Frankfurt Stock Exchanges;
with this milestone reached, we have a very exciting opportunity to
continue to expand our mining operations and solidify our position
as an emerging East African focused gold producer. To this end, we
aim to rapidly increase production to +50,000oz p.a. and build a
JORC compliant resource base of +3Moz within 12-18 months. We have
already started an optimisation strategy at the Kilimapesa Gold
Mine, where there is significant expansion potential and ability to
increase gold production to 25,000oz p.a. and the resource to
+2Moz. We also aim to utilise our experienced team to acquire other
complementary and strategically located gold mine and development
projects in East Africa.
"The successful c.GBP5.5 million fundraising, which saw key UK
and European institutions and retail investors join our share
register, highlights our compelling investment opportunity: a
producing asset in Kilimapesa; strong gold market dynamics; and a
team with a track record of delivery in the gold space. Given the
high volume of activity and steady stream of news ahead for the
Company, I am confident that we will deliver value to shareholders
and look forward to having a regular dialogue with them."
DETAILS
The Company aims to build a position as an emerging East African
focused gold producer with a clear path to grow production and
resources both organically and through strategic acquisitions.
Following Readmission, it aims to rapidly increase production to
+50,000ozs per annum ('p.a.') and build a JORC compliant resource
base of +3Moz within 12-18 months from listing.
To this end, a phased mine optimisation strategy at the
Company's newly acquired Kilimapesa Gold Mine is already advancing,
where there is significant expansion potential and ability to
increase gold production to 25,000oz p.a. and the resource to
+2Moz.
Additionally, the Company aims to utilise its experienced team
to acquire other complementary and strategically located gold mine
and development projects in East Africa; several assets are under
review.
To enhance its international profile and ensure the Company will
be well positioned to engage with a broad spectrum of UK, European
and African-based funds, institutions, and investors, the Company
also aims to undertake a Nairobi cross-listing via an introduction
of the Company's shares to the Growth Enterprise Market Segment
("GEMS") of the Nairobi Securities Exchange ("NSE") (the "NSE
Listing"). Faida Investment Bank Limited ('Faida'), headquartered
in Nairobi, Kenya, is its financial adviser and joint broker, in
relation to this. Faida is a market leader in the Kenyan securities
and capital markets and works in joint venture with the Company's
joint broker, VSA Capital Ltd, for the benefit of corporate
clients.
Placing & Use of Proceeds
The Company has raised gross proceeds of approximately
GBP5,493,885 through the issue of 638,951,276 Placing Shares. The
placing price has been completed in two rounds, comprising first
round commitments of GBP2,686,885 and second round commitments of
GBP2,807,000 that was completed at a placing price of GBP0.01 per
share.
The net proceeds from the Placing will be used to advance the
development strategy at Kilimapesa and applied to pay professional
fees incurred in relation to the transaction and for general
working capital purposes.
Further information on the Company, including the Prospectus
published in conjunction with Readmission, can be found on the
Company's website: https://caracalgold.com.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Regulation 11 of the Market Abuse (Amendment) (EU Exit)
Regulations 2019/310 ("MAR"). With the publication of this
announcement via a Regulatory Information Service, this inside
information is now considered to be in the public domain.
ENDS
For further information visit https://caracalgold.com or contact
the following:
Caracal Gold plc info@caracalgold.com
Gerard Kisbey-Green
Jason Brewer
Novum Securities Ltd crowbury@novumsecurities.com
Joint Broker
Colin Rowbury
-----------------------------
VSA Capital Ltd ipo@vsacapital.com
Financial Adviser and Joint
Broker
Andrew Raca / James Deathe
-----------------------------
St Brides Partners Ltd info@stbridespartners.co.uk
Financial PR
Isabel de Salis
-----------------------------
DGWA, the German Institute for info@dgwa.org
Asset and
Equity Allocation and Valuation
European Investor and Corporate
Relations Advisor
Stefan Müller / Katharina
Löckinger
-----------------------------
Notes
Caracal Gold plc is an emerging East African focused gold
producer with a clear path to grow production and resources both
organically and through strategic acquisitions. Its aim is to
rapidly increase production to +50,000ozs p.a. and build a JORC
compliant resource base of +3Moz within 12-18 months from its
listing in August 2021. To this end, it is currently progressing a
well-defined mine optimisation strategy at its 100% owned
Kilimapesa Gold Mine, where there is significant expansion
potential and ability to increase gold production to 25,000oz p.a.
and the resource to +2Moz. Notably, the mine has strong community
support and local stakeholder engagement. Additionally, its
experienced team, with proven track record in successfully
developing and operating mining projects throughout Africa, is
reviewing other complementary and strategically located gold mine
and development projects in East Africa.
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END
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