REG - Caracal Gold PLC - General Update

Caracal GoldAnnouncement

23/08/2024 10:45

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RNS Number : 6123B  Caracal Gold PLC  23 August 2024

 

23 August 2024

 

Caracal Gold Plc

('Caracal' or the 'Company')

General Update

Caracal Gold Plc, the East African gold producer with over 1,300,000 oz JORC
compliant gold resources, provides an update across various corporate and
financial issues.

Cynergy Transaction

Further to the announcement made on 15 August 2024, the Company and Cynergy
Global Ltd have agreed a second extension to the payment of the second
US$500,000 tranche due under phase 1 of the Cynergy strategic investment plan.
The extension has been granted until the end of September 2024.

The extension is to allow Caracal to deal with a matter raised by Cynergy on
20  August 2024 over the Company's subsidiary, Tyacks Gold Ltd ('Tyacks').
The matter is outlined further below headed 'Tanzania Mining License'.

Cynergy confirmed their commitment to their investment into the Caracal
projects.

Tanzania Mining License

As part of the Company's strategy for the Nyakafuru project in Tanzania the
Company commenced work in July 2023 to apply for two mining licenses within
areas covered by exploration licenses owned by Tyacks. Formal applications
were submitted to the authorities in Tanzania for review in December 2023. The
Tanzanian authorities have recommended the first of these applications for
issue.

The mining license application process was handled by Mr Mark Stanley, one of
the vendors as well as a director of Tyacks. A reimbursement of up to
US$500,000 ('Payment') has been agreed between Mr Stanley and the Company due
when the first of the licences is issued. The terms of payment of the Payment
are under negotiation and upon finalisation and agreement Mr Stanley and his
co-director have agreed to resign from the Board of Tyacks allowing the
appointment of Directors from the Company and Cynergy as contemplated in the
Heads of Terms concluded with Cynergy. Once complete, Cynergy will complete
the phase 1 investment.

Kenya Revenue Authority ('KRA') Settlement

A claim was brought by the KRA against Kilimapesa Gold (Pty) Limited
('Kilimapesa'), a subsidiary of Caracal. This claim arose out of the sale of
Kilimapesa by Gold Minerals Resources Limited to Caracal.

The actual taxpayers of this claim are Gold Mineral Resources Limited ('GMR')
(a subsidiary of Goldplat Plc) and Mayflower Capital Investments Ltd ('MCI')
(A company associated with a previous Caracal Executive Director namely Mr
Jason Brewer). Caracal and the KRA agreed to refer the claim to a process of
Alternative Dispute Resolution ('ADR') Under this ADR, it was resolved that,
Kilimapesa acting as agent on behalf of GMR and MCI to assist the KRA to
negotiate and settle the claims.

The claim against Gold Minerals Resources Limited , detailed in the RNS by
Goldplat on 15 August 2024, has been settled.

Kilimapesa continue to act as agent on behalf of MCI for the claim by the KRA
against MCI. Mr Brewer has engaged directly with the KRA on behalf of MCI to
reach a settlement. The value of claim agreed under the ADR is US $452,000.

Audit Process

The Company has been in regular communication with its auditors, PKF
Littlejohn, regarding the audit for the year ended June 2023. The Company has
been informed by PKF that the file is with the Engagement Quality Reviewer who
commenced work on the file on the 20(th) August 2024. We expect to announce
completion of the audit in the near future.

Prospectus

The Company submitted a further draft of the prospectus to the Financial
Conduct Authority for review on 21 August 2024.

Cashflow

The Company has to date received the 1(st) US$500,000 from Cynergy and once
the conditions precedent have been satisfied, it will transfer the second
tranche. This, combined with the fact that no cash flow is being generated at
Kilimapesa, has placed the Company under significant cash flow pressure and
distress. The Company is engaged with various stakeholders to raise the
required funding to ameliorate this situation and will provide updates in due
course.

Group Reserves and Resources Statement

The Company wishes to announce its Mineral Resource Estimate for its assets in
Kenya and Tanzania as at 30 June 2024.

 

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.

 

Simon Grant-Rennick, Chairman of Caracal states:

"We are very pleased to see the audit coming to an end, the process has been
extremely frustrating and drawn out for all involved. This is the first step
in getting our shares back to trading, the other step being the submission of
December 2023 interims.

The approval of the mining license in Tanzania is a major achievement for the
Company and key  for our strategy.

We continue to work hard with Cynergy so they can complete the phase 2
investment.

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 20,000oz per annum producer with 3moz in
resource."

 

* * 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 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 potential 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.

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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