Caracal’s Kilimapesa secures $3m financing

12th December 2022

By: Donna Slater

Features Deputy Editor and Chief Photographer

     

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East Africa-focused gold producer Caracal Gold’s 100%-owned Kenyan operating subsidiary Kilimapesa Gold has secured non-dilutive financing of $3-million through a prepaid gold purchase agreement with Philoro Global Trading.

This follows the securing of an initial $10.5-million conditional non-dilutive financing through a prepaid gold purchase agreement of November 29.

Caracal CEO Robbie McCrae says this second non-dilutive financing further strengthens the company’s cash position, bringing the total raised in the last two weeks to $13.5-million.

The total contract price will be made available to Kilimapesa Gold in a single tranche to be drawn on or before December 31, and which is repayable in six equal instalments starting immediately.

The gold delivered is sold at the spot price of the day at the time of the transaction and is subject to a minimal discount and refining fee.

“Attracting these two new high-calibre partners, [financier] OCIM and Philoro, is testament to the vast potential Caracal offers as it focuses on becoming a [larger than] 50 000 oz/y producer with [more than] three-million ounces in resources,” he says.

Going forward, the capital enables Caracal to concentrate on the final push to deliver on its initial production target of 24 000 oz/y, while continuing to advance its regional exploration efforts in Kenya to ultimately build the life-of-mine and value potential, says McCrae.

In addition, he says the company is excited by the development opportunity Nyakafuru, in Tanzania, offers and looks forward to progressing Caracal’s targeted exploration programme to support a preliminary economic assessment.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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