2nd Jul 2019 10:22
(Alliance News) - Keras Resources PLC is to distribute its stake in Calidus Resources Ltd, worth over GBP11 million, to shareholders by the end of 2019, it said Tuesday.
An escrow period for Keras' shares in Australia-listed miner Calidus has expired, Keras said, meaning the shares it holds can now trade without restriction in Sydney.
Calidus is expected to publish a pre-feasibility study for the Warrawoona gold project in Pilbara, Western Australia, in July, and following this 265 million performance shares will be issued to Keras.
This will mean it holds 724 million Calidus shares, worth around GBP11.6 million. These will be distributed to Keras shareholders via a capital reduction and demerger, Keras said.
Not including the new performance shares, Keras holds 32% of Calidus.
Chief Executive Russell Lamming commented: "The proposed distribution of Calidus shares unlocks significant shareholder value in a somewhat unusual circumstance where we plan to distribute approximately GBP11.6 million worth of Calidus shares to our shareholders from Keras, which has a market capitalisation of circa GBP8.6 million.
"In addition, each shareholder will still retain their current shareholding in Keras with direct exposure to the Nayega manganese project that post-exploitation permit approval has installed production capacity to produce 75,000 tonnes of beneficiated manganese ore per year."
"Our current proposal to distribute the Calidus shares will reward shareholders and allow us to be recognised and valued as a pure manganese play, which is unique on the London markets," Lamming continued.
"The long-term demand fundamentals for manganese are strong and we believe that Nayega is an excellent platform from which to execute our growth strategy. I look forward to updating the market on developments in due course."
Keras, aside from Calidus, holds an 85% interest in the Nayega manganese project in northern Togo, which currently has a mineral resource of just under 14.0 million tonnes at a grade of 12% manganese.
Keras shares were 3.4% higher on Tuesday morning in London at 0.39 pence each.
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