17th Oct 2018 12:34
LONDON (Alliance News) - Keras Resources PLC said Wednesday its investee Calidus Resources Ltd has placed 125 million shares to Alkane Resources Ltd to raise cash to complete a pre-feasibility study at its Warrawoona gold project in western Australia.
Keras holds a 35% stake in Calidus, representing about 458 million shares. Following the admission of the new shares its holding will decrease to 32%.
On completion of the pre-feasibility study, an additional 265 million performance shares of Calidus, owned by Keras, will be converted into ordinary shares.
The placing shares will be priced at AUD0.0295, about 1.6 pence, to raise AUD3.7 million, about GBP2.0 million.
The placing represents a "strategic technical alliance" between Calidus and Alkane, allowing Calidus to "leverage" Alkane's operational experience.
"For Keras, this will not only provide a more tangible sense of the value and optimum path towards production, but it will also trigger the issue of our additional 265 million performance shares," said Russell Lamming, chief executive officer.
"Alkane also brings to the table considerable expertise in the Australia gold development and production industry, and I am sure the Calidus board will find their support invaluable as the Calidus team look to issue the updated resource estimate, publish the pre-feasibility study and advance Warrawoona towards first gold production."
Shares in Keras Resources were down 4.1% at 0.35 pence each.
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