LONDON (Alliance News) - Keras Resources PLC on Monday said it has signed a binding profit share agreement with KalNorth Gold Mines Ltd for the Lindsay's Project in Western Australia, which could potentially increase its gold tribute inventory.
Keras, an Australian gold miner, has been granted an exclusive and irrevocable option to mine the Lindsay's project, in consideration for a share of the net revenues derived from the project. If Keras exercises this option it will enter a formal agreement with KalNorth.
The Lindsay's Project incorporates total open pit and underground resources of 215,000 ounces gold at a grade of 1.7 grammes per tonne.
"I am delighted with the rapid progress we have made in our strategy of becoming a cash flow positive mining company. With this transaction, we can look to expand our cash flow generation which is due to start in the very near-term," said Managing Director Dave Reeves in a statement.
Shares in Keras Resources were up 12% at 0.950 pence Monday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Keras Res (KRS)