Imara Gold Plc (LON: IGLD) has secured a US$1,000,000 unsecured loan facility from a European strategic investor, to be repaid with 100% interest for a total repayment of US$2,000,000. Repayment will be made via 50% of free cash flow generated from the Kilimapesa Gold Mine once contractor-led production begins.
The funds have been placed into escrow and will be used to settle legacy stakeholder obligations in Kenya. These include payments to the Moyoi Community, Narok County landowners and employees, as well as administration costs, regulatory fees and government royalties.
Key Terms:
· Facility Amount: USD$1,000,000.
· Instrument: Unsecured loan.
· Return: 100% interest, such that a total of USD$2,000,000 (principal plus interest) is repayable.
· Drawdown Date: 27th January 2026.
· Repayment: 50% of free cash flow attributable to Kilimapesa Gold (Pty) Ltd from the Kilimapesa Gold Mine, starting 30 days after contractor-led production commences and continuing until USD$2,000,000 has been repaid.
· The funds will be deposited with the company’s lawyers in Escrow and released according to instruction.
Use of Proceeds:
Under the loan and linked escrow arrangements, proceeds are ringfenced for agreed Kenyan stakeholder and statutory obligations associated with the Kilimapesa operation, including:
· Payments to the Moyoi Community and related community groups;
· Settlements with Narok County landowners under existing lease arrangements; and
· Payments to Kenyan-based employees connected with Kilimapesa.
Escrow Drawdown Conditions:
· $62,562.50 on signature of agreement for administration and regulatory payment;
· $267,062.00 on agreement with the government on outstanding license issues for full settlement of outstanding staff payments;
· $360,000.00 on agreement with the government on outstanding license issues for full settlement of Moyei community debt;
· $80,470.00 on agreement with the government on outstanding license issues for full settlement of Landlords debt;
· $15,625.00 on agreement with the government on outstanding license issues for full settlement of government royalties; and
· the balance to cover monthly overheads and NSSF payments equally over Feb, March and April 2026.
At the same time, Imara said it is in advanced negotiations to finalise a contractor-led mining and processing agreement covering the Kilimapesa licence area. Under the proposed structure, the contractor would provide mining equipment, working capital and an experienced operations team, materially reducing Imara’s capital and working capital requirements. In return, Imara would receive a royalty on gold produced, allowing the company to progress production with limited upfront financial exposure.
Jason Brewer, Executive Director of Imara Gold Plc, said:
“This funding and operating framework is about putting Kilimapesa back onto a structured and sustainable footing. We are addressing community, land and statutory matters, aligning with local stakeholders and putting in place a contractor-led operating model. Subject to the required confirmations and mobilisation, this gives the Company a clearer path toward restarting mechanised production at Kilimapesa.”
For further information visit www.caracalgold.com
