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(Alliance News) - Keras Resources PLC said Wednesday it has made progress on commencing production on the Nayega manganese project in Northern Togo.
In addition, Keras said that the High Court of Justice has made an order approving a reduction of the company's capital.
The reduction comprises the cancellation of the mineral resource company's share premium account, which will not change the number of overall issued shares.
On November 19, a further hearing is scheduled to take place, to gain approval for the cancellation and repayment of all 1.19 billion deferred shares, and 0.09 pence of the capital paid up on each issued ordinary shares.
The repayment will be carried out by transferring 723.8 million shares in Calidus Resources Ltd held by Keras to eligible shareholders. Shareholders will be entitled to receive one Calidus shares for every 3.44229 shares held.
Keras Resources currently holds a 34% stake in Calidus, which is an ASX-listed gold explorer.
The transfer of Calidus shares is expected to take place by November 29, and before a proposed consolidation of Calidus shares.
Concerning Nayega, Keras and its 85%-owned subsidiary Societe Generale de Mines, which holds the exploration permit for the project, met with the Togolese Ministry of Mines over the starting of production.
All ancillary documentation related to the permit is expected to be concluded by the end of 2019, which will allow commercial production to start in the first quarter of 2020.
Initial operations will be based on shipping ore to smelter end users, however Keras believes that there is potential to add value by producing mangaese sulphate fore the fertiliser and bettery market.
To this end, the company has appointed Simulus Engineers to conduct a scoping study on the possibility of developing such a refinery for the Nayega project.
"The Council of Ministers decree authorising the grant of the exploitation permit for our flagship Nayega manganese project is transformational and a major milestone for the company. Our strategy of proving up the project through the fully funded 10,000-tonne bulk sample programme has been validated, and without investing any further capital, Keras can transition seamlessly from Explorer to Producer," said Chief Executive Russell Lamming.
Shares in Keras Resources - which is headquartered in Cobham - were up 5.6% at 0.47 pence on Wednesday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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