REG - Keras Resources PLC - Annual Results Update & Suspension

Keras ResourcesAnnouncement

03/07/2023 07:00

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RNS Number : 6523E  Keras Resources PLC  03 July 2023

Keras Resources plc / Index: AIM / Epic: KRS / Sector: Mining

 

3 July 2023

 

Keras Resources plc ('Keras' or the 'Company')

 

Annual Results Update & Suspension

 

Keras Resources plc (AIM: KRS) announces that the audit process is complete
but due to a matching day delay in funds receivable and funds payable
explained below, the publishing of its audited Annual Report and Accounts for
the year ended 31 December 2022 (the "Annual Report") will be delayed.

As announced on 30 March 2022, the Company entered into an agreement whereby
Keras purchased the outstanding 49% equity interest in Falcon Isle Resources
LLC and Falcon Isle Holdings LLC (collectively "Falcon Isle"'), the owner
of the Diamond Creek Mine, for a total consideration of US$3.2m. Keras was
due to make a cash payment of US$800,000, being part of the consideration for
the acquisition of Falcon Isle, and a US$240,000 severance payment ("Total
Payment") to the former CEO of Falcon Isle ("Helda"), on 1 July 2023. As
announced on 18 May 2023, the Republic of Togo (the "State") committed to pay
a cash consideration of US$1.7 million to Keras on 17 July 2023. It has always
been the Company's intention to make the Falcon Isle payments from the amount
receivable from the State and in May 2023 the Company requested Helda for a
delay in making the Total payment until 18(th) July - this was declined.

Despite the deadline of July 17 for payment of the US$1.7m, the State with
whom we have developed a positive rapport displayed their goodwill by issuing
instructions to make the payment of 1.7 million on June 27, 2023, well ahead
of schedule. Unfortunately, the Company had not received these funds in its
own bank account at the close of business on 30 June 2023, and this has
resulted in a technical default.  Keras has received reassurances that the
funds will be available in our account within the next 7 days and the default
will be remedied immediately following the receipt of US$1.7 million from the
State, within the 30 day period permitted in the agreement with the vendor of
Falcon Isle.

As the Annual Report had not been released by 30 June 2023, being the deadline
provided by Rule 19 of the AIM Rules for Companies (the "AIM Rules"), trading
in the Company's ordinary shares on AIM will be suspended with effect from
7.30am on Monday 3 July 2023. The Annual Report is expected to be released as
soon as the matters set out above are resolved, which is expected to be within
seven days. Release of the Annual Report will permit the Company to request
that the suspension is lifted.

In accordance with Rule 41 of the AIM Rules, the admission of the Company's
shares to trading on AIM would be cancelled if the Company's shares are
suspended from trading for six months.

Graham Stacey, CEO of Keras, commented, "It is very frustrating to have to
delay the publishing of our accounts but it has highlighted the reason for
taking 100% control of Diamond Creek and the proactive approach by the State,
in fulfilling the US$1.7m payment in advance, underpins their commitment and
augurs well for a productive collaboration on the Nayéga project, benefiting
all parties involved.

 

The information contained within this Announcement is deemed by the Company to
constitute inside information as stipulated under Article 7 of the Market
Abuse Regulation (EU) No. 596/2014 (as amended) as it forms part of the
domestic law of the United Kingdom by virtue of the European
Union (Withdrawal) Act 2018 (as amended). Upon the publication of this
Announcement via the Regulatory Information Service, this inside information
is now considered to be in the public domain.

 

**ENDS**

 

For further information please visit www.kerasplc.com
(http://www.kerasplc.com/) , follow us on Twitter @kerasplc or contact the
following:

 

 Graham Stacey                         Keras Resources plc             info@kerasplc.com

 Nominated Adviser & Joint Broker      SP Angel Corporate Finance LLP  +44 (0) 20 3470 0470

 Ewan Leggat / Charlie Bouverat

 Joint Broker                          Shard Capital Partners LLP      +44 (0) 207 186 9900

 Damon Heath / Erik Woolgar

 

Notes:

Keras Resources (AIM: KRS) wholly owns the Diamond Creek organic phosphate
mine in Utah, US. Diamond Creek is one of the highest-grade organic
phosphate deposits in the US and is a fully integrated mine to market
operation with in-house mining and processing facilities. The operation
produces a variety of organic phosphate products that can be tailored to
customer organic fertiliser requirements.

 

The Company is focused on continuing to build market share in the
fast-growing US organic fertiliser market and build Diamond Creek into the
premier organic phosphate producer in the US.

 

 

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