Kilimapesa Gold secures $10.5m of financing

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Kilimapesa Gold has secured conditional non-dilutive financing of US$10.5m through a pre-paid gold purchase agreement.

The Caracal Gold’s Kenyan subsidiary 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.

Production target

The proceeds from this financing will enable Caracal to be fully funded and to continue with the expansion of production at the Kilimapesa gold mine, in Kenya, to the targeted rate of 24 000 oz/y, which is expected by March next year.

The funds raised will also be used to complete a Phase 2 exploration programme on Caracal’s Nyakafuru project, in Tanzania, to ultimately advance a preliminary economic assessment on the project.

“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,” Robbie McCrae, CEO of Caracal commented.

 

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