TIDMKRS
RNS Number : 2215B
Keras Resources PLC
29 January 2020
Keras Resources plc / Index: AIM / Epic: KRS / Sector:
Mining
29 January 2020
Keras Resources plc ('Keras' or the 'Company')
Fundraising of GBP310,000 to Commence Fabrication of 25ktpm
Expansion Plant
& Appointment of Joint Broker
Keras Resources plc, the AIM listed mineral resource company is
pleased to announce that it has raised GBP310,000 (before expenses)
through the placing of 206,666,660 new ordinary shares of 0.1p each
('Ordinary Shares') at a price of 0.15p per Ordinary Share (the
'Placing Shares') (the 'Placing').
Overview
-- Capital raise of GBP310,000 through placing of 206,666,660 new Ordinary Shares
-- Funds raised to be used to fast track infrastructure
development at the Nayega Manganese ('Mn') Project ('Nayega', or
the 'Project') held through the Company's 85% owned subsidiary
Société Générale de Mines SA ('SGM') including:
o Place order to commence fabrication of the 25,000 tonnes per
month ('tpm') expansion plant;
o Finalise hydrogeological study to increase the water
supply;
o Secure storage facilities near Port Lomé to ensure efficient
export of beneficiated Mn ore; and
o Ongoing working capital.
-- Appointment of Shard Capital Partners LLP as Joint Broker, effective immediately
-- Ongoing discussions with third party off-takers with a view
to securing pre-payment and stockpile financing to minimise
dilution as Nayega is developed.
Russell Lamming, CEO of Keras Resources, commented, "Post the
completion of the corporate restructuring which created the
platform to transition into a mining company, we are now focussed
on delivering on the target of production in this first quarter of
2020. Although production will commence immediately post completion
of the permitting process, it is important that the long-lead items
underpinning the expansion to 25,000tpm are ordered to ensure that
we reach nameplate capacity by year end. As such, the new plant
will be ordered, and we will finalise the hydrogeological project
to ensure sufficient water is available for the expansion. In
addition to on-site activities, we will be setting up a secure
storage facility near Port Lomé to ensure that we can manage the
export of the manganese ore efficiently.
"It has been a busy start to the year, and we intend to maintain
this momentum as we progress to the planned production rate of
25,000tpm by the end of 2020. Post the successful bulk sampling
programme that proved up the mine to market project we have had
significant interest from third party trading companies and
end-users and are currently assessing the best financing option for
all stakeholders.
We continue to work closely with all parties associated with the
Nayega permitting process as we look to start production in the
near future. I welcome the team at Shard Capital on board and look
forward to updating shareholders on a consistent basis."
Background
Keras is focused on advancing its Nayega Manganese Project in
Togo, West Africa, to commercial production. The Project hosts a
current JORC Compliant Mineral Resource of 13.5Mt @ 11.1% Mn and an
Ore Reserve of 8.48Mt @ 14.0% Mn with additional upside identified
through exploration work. The known deposit at Nayega covers 2.2km
by 500m and averages 3.3 metres in thickness.
The installed processing capacity at Nayega has the capacity to
produce 6,500tpm. An expansion plant designed to increase that
capacity to 25,000tpm will now be ordered at a total cost,
including all ancillary water and power inputs of USD$1.5m with
annual production now planned for 300,000 tonnes.
On 18 October 2019, the Council of Ministers of the Republic of
Togo adopted a decree to grant a license for large-scale
exploitation of the manganese deposit at Nayega to SGM. The Company
expects to commence commercial production at Nayega in Q1 2020.
Details of the Placing
In addition to the Placing, the Company has also agreed to issue
a further 6,666,660 new Ordinary Shares in lieu of advisory
fees.
Application will be made for admission of the 213,333,320 new
Ordinary Shares to trading on the AIM Market of the London Stock
Exchange ("Admission"). It is anticipated that Admission will take
place on 12 February 2020. The Placing Shares and Director
Conversion Shares will rank pari passu with the existing Ordinary
Shares, which are currently traded on AIM.
Following Admission, there will be 2,784,802,182 Ordinary Shares
in issue with each share carrying the right to one vote. There are
no shares currently held in treasury. The total number of voting
rights in the Company will therefore be 2,784,802,182 and this
figure may be used by shareholders as the denominator for the
calculations by which they determine if they are required to notify
their interest in, or a change to their interest in, the Company
under the Financial Conduct Authority's Disclosure Rules and
Transparency Rules.
Corporate Presentation
An updated corporate presentation for Q1 2020, which was used
for the purposes of the Placing, will be made available on the
Company's website on 29 January 2020 and can be viewed at
www.kerasplc.com.
For the purposes of MAR and Article 2 of Commission Implementing
Regulation (EU) 2016/1055, this announcement is being made on
behalf of Russell Lamming, Chief Executive Officer. This
announcement contains inside information for the purposes of
Article 7 of Regulation (EU) 596/2014.
**ENDS**
For further information please visit www.kerasplc.com, follow us
on Twitter @kerasplc or contact the following:
Russell Lamming Keras Resources plc info@kerasplc.com
Nominated Adviser & Joint
Broker
Ewan Leggat / Charlie SP Angel Corporate Finance +44 (0) 20 3470
Bouverat LLP 0470
Joint Broker Shard Capital Partners +44 (0) 207 186
Damon Heath, Erik Woolgar LLP 9900
Financial PR
Isabel de Salis / Cosima +44 (0) 20 7236
Akerman St Brides Partners Ltd 1177
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Authority to act as a Primary Information Provider in the United
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contact rns@lseg.com or visit www.rns.com.
END
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