REG - Caracal Gold PLC - $US10.5m non-dilutive financing secured

Caracal GoldAnnouncement

29/11/2022 07:00

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RNS Number : 8428H  Caracal Gold PLC  29 November 2022

Caracal Gold plc / EPIC: GCAT / Market: Main / Sector: Mining

 29th November 2022

Caracal Gold plc ('Caracal' or the 'Company')

$US10.5m non-dilutive financing secured

 

Caracal Gold plc, the expanding East African gold producer with over
1,300,000oz JORC compliant gold resources, is pleased to announce that it has
secured conditional non-dilutive financing of US$10.5m through a pre-paid gold
purchase agreement.

 

Kilimapesa Gold Pty Ltd ('KPG'), the 100% owned Kenyan operating subsidiary of
Caracal, has entered into a pre-paid gold purchase agreement with a contract
price totalling up to US$10.5m with OCIM Metals & Mining SA ('OCIM'). The
total contract price will be made available to KPG, subject to conditions, in
two tranches, with a 1(st) tranche of US$7m to be drawn on or before 31
December 2022 and a 2(nd) tranche of US$3.5m to be drawn down on terms to be
agreed between OCIM and KPG.

 

Upon satisfaction of conditions, the proceeds from this financing will mean
Caracal will be fully funded to continue the ongoing expansion of production
at its flagship Kilimapesa Gold Mine in Kenya ('Kilimapesa' or the 'Project')
to the targeted rate of 24,000oz per annum production, with final
commissioning to achieve this now scheduled in March 2023.  The funds raised
will also be used to complete the Phase 2 exploration programme at the
Nyakafuru Project in Tanzania.

 

Robbie McCrae, CEO of Caracal commented:

 

"A non-dilutive financing is a great outcome for Caracal, KPG and all of the
many stakeholders of the Company and the Project. Having funding partners with
the calibre of OCIM supporting Kilimapesa, the management and the vision of
Caracal is a vote of confidence as we embark on the final push to deliver on
our production target of 24,000oz per annum, whilst continuing to advance our
regional exploration efforts in Kenya to ultimately build the life of mine and
value potential. Alongside this, we are excited by the development opportunity
Nyakafuru offers and look forward to progressing our targeted exploration
programme to support a Preliminary Economic Assessment."

 

**ENDS**

About OCIM:

The OCIM group of privately held companies has a long and successful history
as a Trader and Financier of Alternative Assets. Established in Paris in 1961,
OCIM is headed by a third-generation member of the founding family.

Besides its core historical business in Real Estate, OCIM has expanded into
other tangible assets such as Precious and Strategic Metals, via its Geneva
and Toronto based subsidiaries.  As a Merchant, OCIM trades metals across the
full value chain, from producers to end users.

As a Financier, OCIM provides funding to the value chain with debt instruments
and structured trade finance.

To learn more about OCIM visit: www.ocim.eu (http://www.ocim.eu)

 

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

 Caracal Gold plc                                      info@caracalgold.com

 Robbie McCrae
 Clear Capital Markets Ltd                             +44 203 897 0981

 Joint Broker                                          +44 203 869 6086

 Keith Swann / Jonathan Critchley
 VSA Capital Ltd                                       +44 203 005 5000

 Financial Adviser and Joint Broker

 Andrew Raca (Corporate Finance)

 Andrew Monk / David Scriven (Corporate Broking)
 St Brides Partners Ltd                                caracal@stbridespartners.co.uk

 Financial PR

 Charlotte Page / Isabel de Salis / Isabelle Morris
 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 km(2) 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.

 

Caracal's shares are quoted on the Main Market of the London Stock Exchange
(LON: GCAT) and on the Frankfurt Stock Exchange (FSE: 6IK).  The company is
also in the process of listing on the Nairobi Securities Exchange.

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