REG - Caracal Gold PLC - Financing and group reserves and resources update

Caracal GoldAnnouncement

13/07/2023 16:00

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RNS Number : 9768F  Caracal Gold PLC  13 July 2023

13(th) July, 2023

Caracal Gold plc

('Caracal' or the 'Company')

Financing and Group Reserves and Resources Update

Caracal Gold PLC, the expanding East African gold producer with over
1,300,000oz JORC compliant gold resources makes the following updates.

1.     Financing:

1.1.   Fund Raise of GBP 351,000:

The Company is pleased to announce that it has raised GBP 351,000 before
expenses though a subscription (the "Subscription") of 117,000,000 ordinary
shares (the "Subscription Shares") by high-net-worth individuals (the "HNWI")
at a price of GBP 0.003 per ordinary share (the "Subscription Price").

The HNWI who participated in the Subscription will be granted a warrant
("Investor Warrants"). The Investor Warrants carry an exercise price of 0.6
pence per ordinary share and are valid until December 31(st) 2024. Investor
Warrants issued on a 1 for 2 basis over an aggregate of 58,500,000 ordinary
shares have been granted in relation to the Subscription.

The proceeds of the Subscription shall be used to fund the transactional costs
for the Kilimapesa expansion funding currently being finalised.

1.2.   Related Party Transaction:

Certain Investors which took place in the subscription were introduced by Mr.
Stefan Muller who is a Non-Executive Director of the Company. Mr. Muller's
company Deutsche Gesellschaft für Wertpapieranalyse GmbH ("DGWA") will be
paid a commission of 5% of the gross proceeds of the amount introduced by DGWA
(the "Commission"). DGWA has opted to take this commission in shares at the
Subscription Price, totaling 3,350,000 ordinary shares (the "Commission
Shares"). The Board of Directors of the Company which were not involved in the
Subscription considered the terms of the Commission fair and reasonable in so
far as the shareholders are concerned.

DGWA will also be paid a commission of 6% on the US $1m the Company received
from Orca Capital GmbH via the issue or secured convertible loan notes
announced on 16(th) February 2023. The Board of Directors of the Company which
were not involved considered the terms fair and reasonable in so far as the
shareholders are concerned.

 

2.     Group Reserves and Resources Statement:

The Company wishes to announce its Mineral Resource Estimate for its assets in
Kenya and Tanzania.

Over the last 18 months the Company has assembled a portfolio of projects
which host over 1.3moz of JORC compliant gold resources. With the work
completed on exploration during this 18-month period the Company is confident
that once exploration drilling recommences it can significantly increase the
resources in its project areas.

 Summary           Measured and Indicated                   Inferred                                 Total
                   Tonnes (Mt)  Grade (Au g/t)  Ounces (k)  Tonnes (Mt)  Grade (Au g/t)  Ounces (k)  Tonnes (Mt)  Grade (Au g/t)  Ounces (k)
 KENYA
 Kilimapesa Hill   6.92         1.45            318         5.22         1.48            248         12.15        1.5             566
 Red Ray           0.88         2.84            80          1.03         1.83            60          1.91         2.28            140
 Sub-Total         7.8          1.59            398         6.25         1.53            308         14.06        1.56            706
 TANZANIA
 Voyager Mentelle  5.9          1.71            322         1.9          1.47            89          7.7          1.65            411
 Leeuwin Grange    2.2          1.62            114         2.4          1.75            134         4.6          1.69            248
 Sub-Total         8.1          1.67            436         4.3          1.61            223         12.3         1.67            659

 GROUP TOTAL       15.9         1.63            834         10.55        1.57            531         26.36        1.61            1365

 

3.     Status of the Subscription Shares and Commission Shares:

It should be noted that the Subscription Shares and Commission Shares, when
issued, will be fully paid and will rank pari passu in all respects with the
existing ordinary shares, including the right to receive all dividends and
other distributions declared, made or paid after the date of issue. On 15 May
2023, the Company announced that it had submitted a draft prospectus to the
Financial Conduct Authority for approval. The Company continues to work with
its advisers to seek approval of the prospectus by the Financial Conduct
Authority. It is intended that the Subscription Shares and Commission Shares
will be admitted to trading on the Standard Segment of the Main Market of the
London Stock Exchange ("Admission") conditional only on the publication of the
Company's prospectus to the Financial Conduct Authority. Further details of
Admission will be included in the Company's prospectus when it is published.

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR") and is disclosed
in accordance with the Company's obligations under Article 17 of MAR.

* * ENDS * *

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

 Caracal Gold plc

 Robbie McCrae                                       robbie@kilimapesa.com (mailto:robbie@kilimapesa.com)
 VSA Capital Ltd                                     +44 203 005 5000

 Financial Adviser and Joint Broker

 Andrew Raca (Corporate Finance)
 DGWA, the German Institute for Asset and            info@dgwa.org

 Equity Allocation and Valuation

 European Investor and Corporate Relations Advisor

 Katharina Löckinger

 

Qualified Person:

Mr. Franck Bizouerne, P.Geo., Group Mineral Resource Manager of Caracal
Gold PLC, is the Company's Competent Person under JORC Code "Standards of
Disclosure for Mineral Projects" and has reviewed and assumes responsibility
for the scientific and technical content in this press release.

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.

Glossary of Technical Terms:

"Au" - chemical symbol for gold

"cut off grade" - (COG) the lowest grade value that is included in a resource
statement. It must comply with JORC requirement 19: "reasonable prospects for
eventual economic extraction" the lowest grade, or quality, of mineralised
material that qualifies as economically mineable and available in a given
deposit. It may be defined on the basis of economic evaluation, or on physical
or chemical attributes that define an acceptable product specification

"g/t" - grammes per tonne, equivalent to parts per million

"Inferred Resource" - that part of a Mineral Resource for which tonnage, grade
and mineral content can be estimated with a low level of confidence. It is
inferred from geological evidence and assumed but not verified geological
and/or grade continuity. It is based on information gathered through
appropriate techniques from locations such as outcrops, trenches, pits,
workings and drill holes which may be limited or of uncertain quality and
reliability

"Indicated Resource" - that part of a Mineral Resource for which tonnage,
densities, shape, physical characteristics, grade and mineral content can be
estimated with a reasonable level of confidence. It is based on exploration,
sampling and testing information gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drill holes. The
locations are too widely or inappropriately spaced to confirm geological
and/or grade continuity but are spaced closely enough for continuity to be
assumed

"JORC" - The Australasian Joint Ore Reserves Committee Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves 2012 (the "JORC Code"
or "the Code"). The Code sets out minimum standards, recommendations and
guidelines for Public Reporting in Australasia of Exploration Results, Mineral
Resources and Ore Reserves

"koz" - thousand troy ounces of gold

"Measured Resource" - that part of a Mineral Resource for which tonnage,
densities, shape, physical characteristics, grade and mineral content can be
estimated with a high level of confidence. It is based on detailed and
reliable exploration, sampling and testing information gathered through
appropriate techniques from locations such as outcrops, trenches, pits,
workings and drill holes. The locations are spaced closely enough to confirm
geological and grade continuity

"Mineral Resource" - a concentration or occurrence of material of intrinsic
economic interest in or on the Earth's crust in such form, quality and
quantity that there are reasonable prospects for eventual economic extraction.
The location, quantity, grade, geological characteristics and continuity of a
Mineral Resource are known, estimated or interpreted from specific geological
evidence and knowledge. Mineral Resources are sub-divided, in order of
increasing geological confidence, into Inferred, Indicated and Measured
categories when reporting under JORC

"Mt" - million tonnes

"oz" - troy ounce (= 31.103477 grammes)

"Reserve" - the economically mineable part of a Measured and/or Indicated
Mineral Resource

"t" - tonne (= 1 million grammes)

 

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