REG - Keras Resources PLC - Subscription to Raise £372,500

Keras ResourcesAnnouncement

29/10/2024 07:00

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RNS Number : 9446J  Keras Resources PLC  29 October 2024

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

 

29 October 2024

 

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

 

Subscription to Raise £372,500

 

Keras Resources plc (AIM: KRS) is pleased to announce that it has raised a
total of £372,500 through a subscription of 14,900,000 new ordinary shares of
1 pence each ("Ordinary Shares") at a price of 2.5 pence per Ordinary Share
(the "Subscription Shares") (the "Subscription").

 

The Subscription is equally split between Christopher Grosso, a 17%
shareholder in the Company, investing through the Diane Grosso Credit Shelter
Trust, and Joseph Carbone, an investor introduced by Christopher Grosso.

 

The funds raised will be used by the Company for general working capital.

 

Graham Stacey, CEO of Keras commented: "As we continue to grow and expand our
product mix to include PhoSul®, a direct application product as opposed to
our dry rock phosphate products used in various organic fertilizer blends, the
move of our processing operations to Delta has been a key business overhaul
which has needed the support of a key funder and my thanks to Chris Grosso for
his continued support of our business model and structure, and for the
introduction of Joseph Carbone who similarly supports the development of the
organic agricultural space. We remain bullish about this growing market
segment and a portion of the funds raised will go towards bolstering our team
with sales personnel, which in the organic space requires very specific
knowledge and relationships."

 

Related Party Transaction

 

The Subscription by Christopher Grosso, a substantial shareholder in the
Company, constitutes a related party transaction pursuant to AIM Rule 13 of
the AIM Rules for Companies. The Board, all of whom are considered Directors
independent of the Subscription, consider, having consulted with the Company's
Nominated Adviser, that the Subscription is fair and reasonable insofar as
the shareholders of the Company are concerned.

 

Following the Subscription, Christopher Grosso will have a beneficial interest
in 21,153,350 Ordinary Shares of the Company, representing approximately 22.17
per cent. of the enlarged share capital of the Company.

 

Following the Subscription, Joseph Carbone will have a beneficial interest in
7,450,000 Ordinary Shares of the Company, representing approximately 7.81 per
cent. of the enlarged share capital of the Company.

 

 

 

Details of the Subscription

The Subscription has been conducted utilising the Directors' existing
authorities to issue new Ordinary Shares. Application has been made for
admission of the 14,900,000  Subscription Shares to trading on the AIM Market
of the London Stock Exchange ('Admission').  It is anticipated that
Admission will take place at 8 a.m. on or around 1 November 2024. The
Subscription Shares will rank pari passu with the existing Ordinary Shares,
which are currently traded on AIM.

 

Following Admission, there will be 95,397,177 Ordinary Shares in issue with
each share carrying the right to one vote.  There are no shares currently
held in treasury.  The total number of voting rights in the Company will
therefore be 95,397,177 and this figure may be used by shareholders as the
denominator for the calculations by which they determine if they are required
to notify their interest in, or a change to their interest in, the Company
under the Financial Conduct Authority's Disclosure Rules and Transparency
Rules.

 

 

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 / Caroline Rowe

 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. Keras's 100% held subsidiary Falcon
Isle Resources Corp. ("FIR") recently entered into a 50/50 Joint Venture with
Idaho-based PhoSul LLC to produce PhoSul®, a certified organic 240 SGN
granule tailored specifically to increase P(2)O(5) available to crops, from
FIR's Integrated Processing facility in Delta, Utah. The Integrated Processing
Facility produces a variety of organic phosphate products including milled 10
mesh and 50 mesh P(2)O(5) products as well as PhoSul® granules which 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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