17th Feb 2016 09:25
LONDON (Alliance News) - Keras Resources PLC shares rose on Wednesday after it said one of its shareholders has sold its stake in the company and no longer holds any shares in Keras.
Keras shares were up 20% to 0.749 pence per share on Wednesday morning.
YA Global Master SPV Ltd has placed its entire shareholding of 45.8 million shares to a "select group of shareholders", which were not named. Following the transaction, YA Global does not hold any shares in Keras.
Based on the current amount of shares in issue, totalling 1.19 billion shares, those 45.8 million shares represent around a 3.8% stake in Keras.
As part of the transaction, Keras said any outstanding liabilities owed to YA Global have been converted into a non-convertible loan of GBP265,000, payable in 12 months as a one-off payment. Importantly, that means YA Global will not be able to acquire any shares in Keras through that loan.
The company said it will repay that loan through cashflow generated from gold production at its Tribute project in the US. Gold production is expected to begin in the second quarter of 2016.
By Joshua Warner; [email protected]; @JoshAlliance
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