(Alliance News) - Keras Resources PLC said Thursday that investee company Calidus Resources Ltd is now fully-funded to undertake a drilling campaign and complete a feasibility study of a mine in Australia following a successful share placing.
Calidus, which operates the Warrawoona gold project, completed an AUD9.0 million, or GBP5.0 million, share placement, though Keras did not participate. The mineral resource company's holding in Calidus will fall to 34% from 39% as a result of the placing.
The funds from the placement will also be used to purchase long lead items for the project's development.
Chief Executive of Keras Russel Lamming said: "This placement is a key milestone achieved for Calidus in the development of the Warrawoona gold project, as it means that it is now fully funded to complete the work required to deliver a robust definitive feasibility study.
"Following the commencement of trading in the issued shares in this placement, Keras will have clear visibility of the capital structure in which to execute its proposed distribution of shares to its own shareholders. We are looking to complete this distribution this year and believe that it will be an exciting time for our shareholders to gain direct exposure to Calidus."
Shares in Keras were up 3.0% at 0.51 pence each in London on Thursday afternoon.
Keras Res (KRS)