Last checked at 10 Jan 2023 07:00
Caracal Gold plc / EPIC: GCAT / Market: Main / Sector: Mining
10 January 2023
Caracal Gold plc ('Caracal' or the 'Company')
Financing Update
Caracal Gold plc, the expanding East African gold producer with over 1.3 million oz ('Moz') JORC compliant gold resources, announces that further to the announcement released on 29 November 2022, the OCIM Metals and Mining SA ('OCIM') pre-paid gold purchase agreement will not be proceeding. The reason being the long stop date of the 31 December 2022 passed and as there is an unfulfilled condition precedent that would have provided OCIM security over the Mining Licence for our flagship Kilimapesa Gold Mine in Kenya ('Kilimapesa' or the 'Project'), OCIM have not extended the long stop date.
Robbie McCrae, Chief Executive Officer of Caracal, commented, "We are disappointed with the OCIM decision not to continue on the final condition precedent and close the transaction. The Caracal team worked tirelessly from May 2022 and the Company and projects passed detailed legal, financial and technical due diligence.
"The robust fundamentals of the Kilimapesa expansion project remain the same, the operations and project team are in place, the support from all stakeholders in Kenya and Tanzania is strong, and the lessons learnt from the process with OCIM have been constructive.
"With funding secured from Philoro Global Trading AG and other proposals received for similar non-dilutive financing, we will move quickly to replace the OCIM funds. We would like to thank OCIM for considering Caracal and Kilimapesa and wish them all the best on future ventures."
**ENDS**
For further information visit www.caracalgold.com or contact the following:
Caracal Gold plc Robbie McCrae | info@caracalgold.com |
Clear Capital Markets Ltd Joint Broker Keith Swann / Jonathan Critchley | +44 203 897 0981 +44 203 869 6086 |
VSA Capital Ltd Financial Adviser and Joint Broker Andrew Raca (Corporate Finance) Andrew Monk / David Scriven (Corporate Broking) | +44 203 005 5000 |
St Brides Partners Ltd Financial PR Charlotte Page / Isabel de Salis / Isabelle Morris | caracal@stbridespartners.co.uk |
DGWA, the German Institute for Asset and Equity Allocation and Valuation European Investor and Corporate Relations Advisor Katharina Löckinger | info@dgwa.org
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Notes
Caracal Gold plc is an expanding East African focused gold producer with a clear path to grow production and resources both organically and through strategic acquisitions. Its aim is to rapidly increase production to +50,000ozs p.a. and build a JORC compliant resource base of +3Moz. The company is progressing a well-defined mine optimisation strategy at its 100% owned Kilimapesa Gold Mine in Kenya, where there is significant mid-term expansion potential and the ability to increase gold production to 24,000oz p.a. and the resource to +2Moz (current JORC compliant resources of approx. 706,000oz). Alongside this, Caracal is undertaking a targeted exploration programme at the Nyakafuru Project in Tanzania, which has an established high-grade shallow gold resource of 658,751oz at 2.08g/t contained within four deposits over 280 km2 and appears amenable to development as a large scale conventional open pit operation.
Caracal's experienced team has a proven track record in successfully developing and operating mining projects throughout Africa. The Company is a responsible mining and exploration company and supports the positive social and economic change that it contributes to the communities in the regions that it operates. It is a proudly East African-focused company: it buys locally, employs locally, and protects the environment and its employees and their families' health, safety, and wellbeing.
Caracal's shares are quoted on the Main Market of the London Stock Exchange (LON: GCAT) and on the Frankfurt Stock Exchange (FSE: 6IK). The Company is also in the process of listing on the Nairobi Securities Exchange.