The listed securities of East African gold producer Caracal Gold started trading on the main market of the LSE and the Frankfurt Stock Exchange on August 31.
As part of its readmission process, the company has raised gross proceeds by placing £5.4-million worth of shares.
The relisting of Caracal’s shares follows a reverse takeover of Mayflower Gold Investment, which Aim-listed Goldplat sold to Caracal, which was previously Papillon Holdings, for 7.17% of Caracal’s issued share capital as consideration.
Goldplat will receive a further $450 000 payment in the next two weeks, as well as a 1% net smelter royalty, limited to $1.5-million, of which $14 000 is already payable.
The asset involved in the sale is the Kilimapesa gold project, in Kenya.
Caracal plans to rapidly increase the project’s production capacity to 50 000 oz/y and build a resource base of three-million ounces within 18 months.
“The successful £5.5-million fundraising, which saw key UK and European institutions and retail investors join our share register, highlights our compelling investment opportunity: a producing asset in Kilimapesa; strong gold market dynamics; and a team with a track record of delivery in the gold space.
“Given the high volume of activity and steady stream of news ahead for the company, I am confident that we will deliver value to shareholders and look forward to having a regular dialogue with them,” says Caracal CEO Robbie McCrae.