Keras Resources PLC Completion of Acquisition of Klondyke Gold Project (7299L)
05 October 2016 - 5:00PM
UK Regulatory
TIDMKRS
RNS Number : 7299L
Keras Resources PLC
05 October 2016
Keras Resources plc / Index: AIM / Epic: KRS / Sector:
Mining
5 October 2016
Keras Resources plc ('Keras' or the 'Company')
Completion of Acquisition of the Klondyke Gold Project
Keras Resources plc, the Australian gold mining company, is
pleased to announce that, further to the announcement of 12
September 2016, it has completed the acquisition of the Klondyke
Gold Project ('Klondyke' or 'the Project') and the Haoma Mining NL
("HML") Right to Mine and Option to Purchase Agreement in the
Pilbara region of Western Australia. These transactions are part of
the Company's strategy to become a significant gold producer in
Western Australia.
Overview
-- Klondyke acquisition is the first step in consolidating the
Warrawoona Greenstone Belt, a prospective gold region in the
Pilbara region in Western Australia;
-- Main shear strike of 7.5km with demonstrated resource potential;
-- Scalable JORC compliant resource of 5.6Mt @ 2.08g/t for
374,000 ounces - only covers 2km of the 7.5km strike, and is also
open at depth;
-- Drill programme to commence immediately to gain a better
understanding of the geology and confirm historic results in
parallel with detailed mapping and review of the entire area;
-- Complements agreement with HML for a Right to Mine and Option
to Purchase Agreement on tenements contiguous and near to Klondyke
- excellent discovery potential as demonstrated by high grade drill
results included in the announcement on 12 September 2016; and
-- Consideration for the Klondyke acquisition will be settled
via the payment of A$1.42m (GBP0.8m) in cash, with the balance via
the issue of 100,000,000 ordinary shares of 0.1p each ("Ordinary
Shares") in the Company, at a price of 0.62p being the closing
price on 4 October 2016 (the "Consideration Shares"). The
Consideration Shares are subject to standard lockup and orderly
trading terms.
Keras Managing Director Dave Reeves said, "The completion of the
Klondyke transaction is a significant milestone for the Company.
The consolidation of the Warrawoona Greenstone Belt, through this
transaction and the Haoma Right to Mine and Option to Purchase
Agreement, has created the critical mass of mineralised lease area
to underpin our intention to be to a stand-alone, owner-operated
gold miner. We are making good progress with mapping and a small
confirmatory drill programme and look forward to keeping
shareholders updated with the progress at the Company's first 100%
owned gold project."
Acquisition Funding
In order to fund the above acquisitions the Company has entered
into an Acquisition Finance Facility Agreement ('Finance
Agreement') with a consortium of investors arranged by Riverfort
Global Capital Ltd (the 'Investors'). The Finance Agreement has
been entered into as a bridge funding facility to secure the
acquisition of a significant long-term asset for the Company.
The total drawdown available before fees to the Company is US$2m
(GBP1.5m) ('Principal Amount') with a maturity date six months
after the initial drawdown at an interest rate of 10% per
semi-annum, with a Commitment Fee and an Implementation Fee of 5%
each. During the period before the maturity the Investors may elect
to convert such principal amount of the loan outstanding at a 20%
premium to the Keras closing share price on the date of
drawdown.
The first draw down will now take place and the Company has
granted GBP389,350 worth of warrants to subscribe for new Ordinary
Shares. The warrants are exercisable at a strike price of 0.8501GBp
and are valid for two years from the date of issue.
Admission and Total Voting Rights
Application has been made for admission of the Consideration
Shares to trading on the AIM Market of the London Stock Exchange
("Admission"). It is anticipated that Admission will occur and
dealings will commence in the Consideration Shares on 7 October
2016. The Consideration Shares will rank pari passu with the
existing Ordinary Shares which are currently traded on AIM.
Following Admission, there will be 1,447,969,623 Ordinary Shares
in issue with each share carrying the right to one vote. There are
no shares currently held in treasury. The total number of voting
rights in the Company therefore will be 1,447,969,623 and this
figure may be used by shareholders as the denominator for the
calculations by which they determine if they are required to notify
their interest in, or a change to their interest in, the Company
under the Financial Conduct Authority's Disclosure Rules and
Transparency Rules.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
**ENDS**
For further information please visit www.kerasplc.com, follow us
on Twitter @kerasplc or contact the following:
Dave Reeves Keras Resources plc dave@kerasplc.com
Nominated Adviser
Gerry Beaney/David Hignell Northland Capital Partners Limited +44 (0) 20 3861 6625
Broker
Elliot Hance/Jonathon Belliss Beaufort Securities Limited +44 (0) 20 7382 8415
Financial PR
Susie Geliher/Charlotte Page St Brides Partners Limited +44 (0) 20 7236 1177
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQEASESEDPKFEF
(END) Dow Jones Newswires
October 05, 2016 02:00 ET (06:00 GMT)
Keras Resources (LSE:KRS)
Historical Stock Chart
From Apr 2024 to May 2024
Keras Resources (LSE:KRS)
Historical Stock Chart
From May 2023 to May 2024