Caracal Gold plc, the expanding East African gold producer with over 1.3 million oz (‘Moz’) JORC-compliant gold resources, announces that further to the announcement released on 29 November 2022, the OCIM Metals and Mining SA (‘OCIM’) pre-paid gold purchase agreement will not be proceeding.
The reason being the long stop date of the 31 December 2022 passed and as there is an unfulfilled condition precedent that would have provided OCIM security over the Mining Licence for our flagship Kilimapesa Gold Mine in Kenya (‘Kilimapesa’ or the ‘Project’), OCIM have not extended the long stop date.
Robbie McCrae, Chief Executive Officer of Caracal, commented, “We are disappointed with the OCIM decision not to continue on the final condition precedent and close the transaction. The Caracal team worked tirelessly from May 2022 and the Company and projects passed detailed legal, financial and technical due diligence.
“The robust fundamentals of the Kilimapesa expansion project remain the same, the operations and project team are in place, the support from all stakeholders in Kenya and Tanzania is strong, and the lessons learnt from the process with OCIM have been constructive.
“With funding secured from Philoro Global Trading AG and other proposals received for similar non-dilutive financing, we will move quickly to replace the OCIM funds. We would like to thank OCIM for considering Caracal and Kilimapesa and wish them all the best on future ventures.”
**ENDS**
For further information visit www.caracalgold.com or contact the following:
Caracal Gold plc
Robbie McCrae
