TIDMGCAT
RNS Number : 3660N
Caracal Gold PLC
31 May 2022
Caracal Gold plc / EPIC: GCAT / Market: Main / Sector:
Mining
31 May 2022
Caracal Gold plc ('Caracal' or the 'Company')
Tanzanian Gold Acquisition to Double Resources to 1.3Moz
Caracal Gold plc, LSE listed gold producer and explorer focused
on East Africa with current operations and projects in Kenya and
Tanzania is pleased to announce that further to the announcement
dated 7 December 2021, it has agreed a revised Share Purchase
Agreement ('SPA') to acquire 100% of Tyacks Gold Limited
('Tyacks'), the holder of the licences collectively referred to as
the Nyakafuru Project ('Nyakafuru' or the 'Project') in Tanzania.
The Project is located in the world-class Lake Victoria Gold Fields
in northern Tanzania, 140km southwest of Mwanza, Tanzania's second
largest city, and 60km from Barrick Gold's 18Moz Bulyanhulu Gold
Mine.
The changes from the previous SPA include the extension of the
completion date, revised commercial terms (which are summarised
below) and the exclusion of the Nyakafura Reefs project and the
Simba projects for the moment.
HIGHLIGHTS
-- 100% acquisition of Nyakafuru will create a major new gold
mine development opportunity for Caracal, in one of Africa's
largest gold producing regions, host to multiple +10Moz
deposits.
-- Project previously subject to extensive exploration and
feasibility study work by ASX and LSE-listed Resolute Limited:
o Established high-grade shallow gold resources of 658,751oz at
2.08g/t contained within four deposits over 280 km(2.)
o Amenable to development as a large scale conventional open pit
operation and Carbon-in-Leach processing plant.
-- Acquisition, when complete. will double Caracal's total gold
resources to 1,330,197 ounces prior to impending resource update at
Kilimapesa - delivering on goal of building an emerging East
African focussed gold producer.
-- The revised SPA, which follows due diligence by Caracal,
allows for extended completion timing and agrees interim process
steps to allow work on the ground to begin immediately.
-- The cash element of the purchase consideration has been revised as follows:
o On or before or before 31 May 2022, Caracal shall pay an
amount equal to USD 500,000. (Tranche 1 Payment).
o On or before 31 July 2022, Caracal shall pay an amount equal
to USD 1,000,000. (Tranche 2 Payment).
-- The share element of the transaction will be finalised in due
course upside but is not expected to be materially different to
what was previously announced.
-- The 0.5% gross net smelter return royalty remains as previously announced.
-- Next steps include finalising the exploration plan and
infrastructure preparation during Q3 2022, ahead of commencing
drilling early Q4 2022.
-- Acquisition completion remains conditional upon receiving
required in-country approvals, with all documentation to be
submitted to the Tanzanian regulators.
Robbie McCrae, CEO of Caracal, said,
"Signing the revised SPA allows us to immediately begin work on
Nyakafuru with drilling to commence in the 4(th) quarter of
2022.
"Since we reached the initial agreement with the vendors, we
have been working collaboratively together to reach the stage where
we can begin to advance the project. We have worked hard to
identify and acquire a project that meets our stringent investment
criteria, namely offering near term development opportunity and
significant value upside whilst complementing our current
portfolio. Nyakafuru meets the brief, with proven high-grade
shallow gold resources and historical mining and development
studies. Nyakafura will more than double our total resource base,
provide exploration potential and allow for accelerated mine
development through a conventional open pit operation and
conventional processing plant.
"With over 1.3moz in gold resources and with the planned updated
resource at Kilimapesa, expected to be completed by the end of
June, we consider Caracal will be well positioned to create value
for our shareholders if you consider the recent B2 Gold acquisition
of OKLO Resources, which implies a value of US$100 per ounce on
OKLO's 669,500oz resource. The coming quarters are expected to be
transformational for our rapidly growing gold exploration and
production strategy in East Africa."
Figure 1: Historical drill intercepts at Voyager, one of four
key deposits identified at Nyakafuru
http://www.rns-pdf.londonstockexchange.com/rns/3660N_3-2022-5-31.pdf
Figure 2: Historical drill intercepts at Mentelle, one of four
key deposits identified at Nyakafuru
http://www.rns-pdf.londonstockexchange.com/rns/3660N_4-2022-5-31.pdf
Figure 3: Historical drill intercepts at Cullen, one of four key
deposits identified at Nyakafuru
http://www.rns-pdf.londonstockexchange.com/rns/3660N_2-2022-5-31.pdf
Figure 4: Historical drill intercepts at Leeuwin, one of four
key deposits identified at Nyakafuru
http://www.rns-pdf.londonstockexchange.com/rns/3660N_1-2022-5-31.pdf
**ENDS**
For further information visit www.caracalgold.com or contact the
following:
Caracal Gold plc info@caracalgold.com
Robbie McCrae
Sheila Boit
Clear Capital Markets Ltd
Joint Broker +44 203 897 0981
Keith Swann / Jonathan Critchley +44 203 869 6086
-------------------------------
VSA Capital Limited
Financial Adviser and Joint
Broker
Andrew Raca (Corporate Finance)
Andrew Monk (Corporate Broking) +44 203 005 5000
-------------------------------
St Brides Partners Ltd caracal@stbridespartners.co.uk
Financial PR
Oonagh Reidy / Charlotte Page
/ Isabelle Morris
-------------------------------
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 progressing a
well-defined mine optimisation strategy at its 100% owned
Kilimapesa Gold Mine in Kenya, where there is significant mid-term
expansion potential and ability to increase gold production to
24,000oz p.a. and the resource to +2Moz (current JORC compliant
resources of approx. 671,000oz). 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.
Caracal is a responsible mining and exploration company and
supports the positive social and economic change that it
contributes to the communities in the regions that it operates. It
is a proudly East African-focused company: it buys locally, employs
locally, and protects the environment and its employees and their
families' health, safety, and wellbeing.
Caracal's shares are quoted on the Main Market of the London
Stock Exchange (LON: GCAT) and on the Frankfurt Stock Exchange
(FSE: 6IK); a listing on the Nairobi Securities Exchange is
underway.
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