REG - Caracal Gold PLC - Tanzania Update

Caracal GoldAnnouncement

28/10/2024 12:15

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RNS Number : 8966J  Caracal Gold PLC  28 October 2024

28 October 2024

Caracal Gold Plc

('Caracal' or the 'Company')

Tanzania Update: Mining License for Kanegele Project and Variation of Vendor
Agreement

 

Caracal Gold Plc, the East African gold producer with over 1.3 million oz of
JORC-compliant gold resources, is pleased to announce two significant
developments. The receipt of the mining license for the Kanegele project in
Tanzania and the finalization of payment terms with Tyacks Gold Limited's
("Tyacks") vendors.

Mining License for Kanegele Project:

Following the formal application of two mining licenses submitted in December
2023, Tyacks has successfully secured the first Mining License for the
Kanegele Project, located within the Nyakafuru project area. The Kanegele
Project, located in the prolific Lake Victoria Gold Fields, is well-positioned
just 140 km southwest of Mwanza, Tanzania's second-largest city and benefits
from established infrastructure.

Vendor Agreement Variation:

As a result of the securing of the mining license, the Company has agreed to
increase the purchase price by an additional US$500,000 payable in cash to the
vendors ("Extra Consideration"). The Extra Consideration is due and payable by
1 February 2025. The Extra Consideration is in recognition of the costs and
time related to the mining license applications and approval. As part of this
agreement, the directors of Tyacks have agreed to resign from the board,
allowing the Company to appoint three new directors to oversee future
developments. Furthermore, the Company will be responsible for the ongoing
management of Tyacks.

Kanegele Project Overview:

The Kanegele Project boasts four main deposits-Voyager, Mentelle, Cullen, and
Leeuwin-covering a JORC-compliant resource of 658,000 oz. Substantial
historical mining, feasibility studies and infrastructure work are already in
place, positioning Kanegele for rapid advancement as an open-pit,
carbon-in-leach (CIL) gold operation. Immediate next steps include:

·    Additional drilling to expand resources.

·    Updating JORC resource and reserve estimates.

·    Advancing pit optimization studies.

·    Undertaking metallurgical, geotechnical, and environmental studies to
international standards for project financing.

·    Finalizing detailed engineering and development plans for the
processing plant.

·    Site preparation and commencement of mine construction.

Further to the announcement of 21 June 2024 which set out the details in the
funding conditionally secured from a strategic investor (the "Cynergy
Transaction"):

The resignation of the 2 historical Directors from Tyacks provides us with the
platform to now conclude    Phase 1 of the Cynergy Transaction. Once
completed Caracal and Cynergy will then move to Phase 2, which involves a US$5
million funding injection from Cynergy to support the Kilimapesa expansion.
The Company will update shareholders in due course.

Simon Grant-Rennick, Chairman of Caracal, commented:

"Securing the mining license for the Kanegele Project is a pivotal milestone
in our broader strategy to bring this high-potential asset into production.
With shallow, high-grade gold resources and robust historical work already
completed, Kanegele ticks all the right boxes for development. We are also
excited to move into the next phase of our partnership with Cynergy, which
will provide essential funding for our Kilimapesa expansion."

"We would like to express our gratitude to Mark Stanley for his significant
contributions to this process and look forward to updating our shareholders on
the next steps in both the Kanegele and Kilimapesa projects."

* * ENDS * *

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

 Caracal Gold plc

 Robbie McCrae                                       robbie@kilimapesa.com (mailto:robbie@kilimapesa.com)

 Simon Grant-Rennick                                 simon@caracalgold.com (mailto:simon@caracalgold.com)
 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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