REG - Caracal Gold PLC - Financing Update

Caracal GoldAnnouncement

19/01/2024 18:00

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RNS Number : 3599A  Caracal Gold PLC  19 January 2024

19 January 2024

Caracal Gold Plc

('Caracal' or the 'Company')

Financing Update

Caracal Gold Plc, the expanding East African gold producer with over 1,300,000
oz JORC compliant gold resources is pleased to announce the following funding
update.

Debt Financing:

The Company has entered into a loan agreement for $250,000 (the "Loan") with
CSS Alpha Global Pte Ltd (the "Lender") on the following principal terms:

·      The term of the Loan is 12 months.

·      The Loan carries interest of 3% per month.

·      There will be a three-month grace period and thereafter the Loan
will be repaid in nine equal instalments.

·      The Loan is secured by a debenture against Caracal Gold Plc in
favour of the Lender.

·      The Loan is also secured by a personal guarantee from the
Company's CEO for 50% of the principal amount. Mr. McCrae will receive a
payment from the Company amounting to 10% of the amount secured by his
personal guarantee.

The personal guarantee given by Robbie McCrae including the associated payment
he shall receive in compensation is a related party transaction. The Board of
Directors of the Company which were not involved in the related party
transaction considered the terms of the transaction fair and reasonable in so
far as the shareholders are concerned.

In addition, as part of the transaction the parent company of the Lender shall
receive 13,000,000 new Ordinary Shares of £0.001 in the Company ("Fee
Shares"). The admission of the Fee Shares to trading is conditional upon
approval of a prospectus by the Financial Conduct Authority.

The funds will be used for working capital at the Company's Kilimapesa Gold
Mine and for various corporate costs including annual audit, prospectus costs
and funding related costs.

Status of the Fee Shares and Total Voting Rights:

The Fee 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.

Following issuance of the Fee Shares the total number of ordinary shares with
voting rights in issue in the Company will be 2,176,578,591.

The above figure may be used by shareholders as the denominator for the
calculations by which they will determine if they are required to notify their
interest in, or a change to their interest in, the Company under the FCA's
Disclosure Guidance and Transparency Rules.

 

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

 

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.

 

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