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(Alliance News) - Keras Resources PLC on Tuesday said it has raised GBP350,000 in gross proceeds via a placing of 87.5 million ordinary shares at 0.4 pence per share.
Shares in Keras were trading 1.0% higher at 0.4899 pence each in afternoon trade.
The mineral resource company intends to use the proceeds to fund the costs associated with the proposed distribution of the company's shareholding in Calidus Resources Ltd and for ongoing working capital purposes.
Keras Resources also said that Non-Executive Chair Brian Moritz and Director David Reeves have agreed to convert GBP458,900 worth of loans into new ordinary shares at the same price as the placing shares. The company intends to issue 114.7 million shares in total to the directors.
"The year to date has been highly productive and I believe the rest of 2019 will be transformational: the proposed demerger of our 724 million Calidus shares, in tandem with our transition from explorer to producer, will see significant value released to shareholders and manganese focussed Keras will become a cashflow positive mining company," Keras Chief Executive Russel Lamming said.
"We have raised the funds to enact the next stage in our genesis and I would like to thank both Dave and Brian for their continued financial support to the business having converted their outstanding loans and director fees, which not only leaves us materially debt free but I believe underpins the value of Keras as an investment opportunity," Lamming added.
