Caracal Gold Regulatory News (GCAT)

Caracal Gold plc / EPIC: GCAT / Market: Main / Sector: Mining

31 August 2021

Caracal Gold plc ('Caracal' or the 'Company')

First Day of Dealings

Caracal Gold plc, the gold producer with operations in East Africa, is pleased to announce that at 08:00 today its ordinary shares will commence trading on the Main Market for listed securities of the London Stock Exchange plc ('LSE') under the ticker GCAT ('Readmission') with contemporaneous dual listing on the Frankfurt Stock Exchange (WKN: A2AM01 and Ticker: FSE: 6IK). As part of the Readmission process, the Company has raised gross proceeds of approximately £5,493,885 through the issue of 638,951,276 Placing Shares completed in two rounds at a placing price of £0.01 per share, implying a market capitalisation of circa £14.5 million on Readmission.

INVESTMENT DRIVERS

· Cash generative and substantially de-risked

o Forecast low AISC-costs and strong operating margins from gold sales at 100% owned Kilimapesa Gold Mine.

· Defined growth strategy

o Phased growth plans and organic development at Kilimapesa as well as exciting acquisition opportunities under review.

· Robust market

o Gold market driven by several factors including financial and geopolitical uncertainties and low interest rates.

· Proven team

o Board and Management with track records in successfully developing and operating mining projects throughout Africa.

Robbie McCrae, CEO of Caracal, said, "We are delighted to commence trading on both the London and Frankfurt Stock Exchanges; with this milestone reached, we have a very exciting opportunity to continue to expand our mining operations and solidify our position as an emerging East African focused gold producer. To this end, we aim to rapidly increase production to +50,000oz p.a. and build a JORC compliant resource base of +3Moz within 12-18 months. We have already started an optimisation strategy at the Kilimapesa Gold Mine, where there is significant expansion potential and ability to increase gold production to 25,000oz p.a. and the resource to +2Moz. We also aim to utilise our experienced team to acquire other complementary and strategically located gold mine and development projects in East Africa.

"The successful c.£5.5 million fundraising, which saw key UK and European institutions and retail investors join our share register, highlights our compelling investment opportunity: a producing asset in Kilimapesa; strong gold market dynamics; and a team with a track record of delivery in the gold space. Given the high volume of activity and steady stream of news ahead for the Company, I am confident that we will deliver value to shareholders and look forward to having a regular dialogue with them."

DETAILS

The Company aims to build a position as an emerging East African focused gold producer with a clear path to grow production and resources both organically and through strategic acquisitions. Following Readmission, it aims to rapidly increase production to +50,000ozs per annum ('p.a.') and build a JORC compliant resource base of +3Moz within 12-18 months from listing. 

To this end, a phased mine optimisation strategy at the Company's newly acquired Kilimapesa Gold Mine is already advancing, where there is significant expansion potential and ability to increase gold production to 25,000oz p.a. and the resource to +2Moz.

Additionally, the Company aims to utilise its experienced team to acquire other complementary and strategically located gold mine and development projects in East Africa; several assets are under review.

To enhance its international profile and ensure the Company will be well positioned to engage with a broad spectrum of UK, European and African-based funds, institutions, and investors, the Company also aims to undertake a Nairobi cross-listing via an introduction of the Company's shares to the Growth Enterprise Market Segment ("GEMS") of the Nairobi Securities Exchange ("NSE") (the "NSE Listing"). Faida Investment Bank Limited ('Faida'), headquartered in Nairobi, Kenya, is its financial adviser and joint broker, in relation to this. Faida is a market leader in the Kenyan securities and capital markets and works in joint venture with the Company's joint broker, VSA Capital Ltd, for the benefit of corporate clients.

Placing & Use of Proceeds

The Company has raised gross proceeds of approximately £5,493,885 through the issue of 638,951,276 Placing Shares. The placing price has been completed in two rounds, comprising first round commitments of £2,686,885 and second round commitments of £2,807,000 that was completed at a placing price of £0.01 per share.

The net proceeds from the Placing will be used to advance the development strategy at Kilimapesa and applied to pay professional fees incurred in relation to the transaction and for general working capital purposes.

Further information on the Company, including the Prospectus published in conjunction with Readmission, can be found on the Company's website: https://caracalgold.com.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310 ("MAR"). With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

ENDS

For further information visit https://caracalgold.com or contact the following:

Notes

Caracal Gold plc is an emerging 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 within 12-18 months from its listing in August 2021. To this end, it is currently progressing a well-defined mine optimisation strategy at its 100% owned Kilimapesa Gold Mine, where there is significant expansion potential and ability to increase gold production to 25,000oz p.a. and the resource to +2Moz. Notably, the mine has strong community support and local stakeholder engagement. Additionally, its experienced team, with proven track record in successfully developing and operating mining projects throughout Africa, is reviewing other complementary and strategically located gold mine and development projects in East Africa.