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LONDON (Alliance News) - AIM-listed Keras Resources PLC on Monday said it has raised GBP563,889 before expenses through an unsecured loan note, in a move to provide it with the working capital needed to begin production at the Grants Patch Gold Tribute project.
Production at the project, which is 30 kilometres north of Kalgoorlie in the prospective Western Australian goldfields, is expected to begin in the second quarter of 2016.
Under the terms of the loan note, which includes an 8% redemption premium, a 10% coupon is payable upfront. In addition, the company will issue GBP1.0 worth of warrants to subscribe for new shares for every GBP1.0 nominal value of the note.
The warrants are exercisable at 0.5 pence per share and are valid for two years from the date of issue
Dave Reeves, managing director of Keras, and Peter Hepburn-Brown, non-executive director, are subscribing for GBP194,444.50 and GBP50,000 nominal value notes respectively.
"I am delighted to announce the finalisation of this loan note as these funds should enable Keras to be in a cashflow positive position next quarter. We specifically wanted to keep away from issuing equity so close to production to minimise dilution to existing shareholders and the board have once again demonstrated their commitment to the company and belief in its prospects by participating," Reeves said.
Shares in Keras were up 14% at 0.570 pence on Monday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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