(Alliance News) - Mineral resource firm Keras Resources PLC on Friday said its chief executive is meeting with regulators and the management team of its subsidiary as it eyes first quarter production at the Nayega manganese project in northern Togo.
Keras shares were 33% higher at 0.20 pence each in London on Friday morning.
As part of the agreement to secure the mining permit at the site, Keras said its Societe Generale de Mines SARL subsidiary would need to be converted from a private company to a public one, thereby altering its name to Societe Generale de Mines SA.
Keras said: "An SA company has a higher degree of corporate governance and is a requirement of the draft mining convention agreed between SGM and the Republic of Togo last year that needs to be implemented before mining can commence.
"The conversion has involved detailed legal, accounting and auditor input to meet all regulatory requirements. Following the issue of the mining permit, the Republic of Togo will be entitled to a 10% carried interest in SGM. As a result, the company's interest in SGM will be reduced to 76.5% on issue of the mining permit."
Away from Nayega, the company said it is in the process of relinquishing its ownership in of the Kamina cobalt and nickel project, also in Togo.
The move is line with its aim of trimming down its assets to become a "focused cash flow generative company".
Keras will also propose changing its share structure. Every ten shares held will be converted to one share under the new structure.
Keras said this will make the company more attractive to "institutional investors looking at cashflow positive mining companies".
By Eric Cunha; ericcunha@alliancenews.com
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Keras Res (KRS)