REG - Caracal Gold PLC - Funding update

Caracal GoldAnnouncement

01/10/2024 08:30

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RNS Number : 4268G  Caracal Gold PLC  01 October 2024

1 October 2024

Caracal Gold Plc

('Caracal' or the 'Company')

Funding update

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

The Company has entered into a US $500,000 Financing Agreement with Koenig
Vermoegensverwal MBH. The Company will repay the principal and accrued
interest amounting to US $1m on 31 December 2025.

In addition, the Company has entered into a Loan Agreement with Robbie McCrae,
the CEO of Caracal. The principal amount of the loan is $100,000. The final
repayment date will be 31 December 2024, accruing interest at 10% per annum
above the Bank of England's Bank Rate.

The funds raised will cover inter alia the following:

·    Costs associated with Mining License being issued to the Company
subsidiary Tyacks Gold Ltd ('Tyacks'),

·    2024 Audit payments to the Company's new auditor RPG Crouch Chapman
and PKF East Africa,

·    Working capital for the group.

Related Party Transaction - The loan from Robbie McCrae constitutes a Related
Party Transaction. The Board of Directors of the Company which were not
involved in the transaction considered the terms of the loan fair and
reasonable in so far as the shareholders are concerned.

As per the announcement on 23 August 2024, the payments made for Tyacks will
allow the Company to resolve the issue raised by Cynergy Global Ltd
('Cynergy") and Cynergy have confirmed their intention to pay the 2(nd) US
$500,000 and conclude phase 1 of the transaction and to progress the
completion of Phase 2 of the transaction as announced on 21 June 2024.

Under phase 2 Cynergy will invest US $5,000,000 into the Kilimapesa expansion
project. The details of the phased investment are detailed in the announcement
on 21 June 2024.

Simon Grant-Rennick, Chairman of Caracal states:

"The ongoing support Koenig Vermoegensverwal mbH is appreciated and we look
forward to announcing the receipt of our first mining license
in Tanzania followed by the completion of phase 1 of the transaction with
Cynergy.

We will now prioritise and complete phase 2 of the Cynergy investment while
completing the interim accounts and 2024 audit.

With the quality of our assets, the gold price at an all-time high and with us
coming towards the end of a very difficult time we look forward to getting the
company back on track to be a 24,000oz per annum producer with 3moz in
resource."

 

Progress on the subsequent financing arrangements with Cynergy continue as
previously announced.

* * ENDS * *

For further information visit www.caracalgold.com
(http://www.caracalgold.com/)  or contact the following:

 Caracal Gold plc

 Robbie McCrae                                       robbie@kilimapesa.com

 Simon Grant-Rennick                                 simon@caracalgold.com
 VSA Capital Limited                                 +44 203 005 5000

 Financial Adviser and 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 owns 100% of Tyacks Gold Ltd which owns
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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