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 1st tranche of US$7m to be drawn on or before 31 December 2022 and a 2nd 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
For further information visit www.caracalgold.com or contact the following:
Caracal Gold plc
Robbie McCrae
