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Exploration|Gold|PROJECT|Resources
exploration|gold|project|resources

Keras to reward shareholders with Calidus shares

2nd July 2019

By: Tasneem Bulbulia

Senior Contributing Editor Online

     

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Aim-listed mineral resource company Keras Resources plans to distribute its shareholding in exploration company Calidus Resources to Keras shareholders in proportion to their holdings in Keras.

The shareholding will be distributed through a capital reduction and demerger process, which requires the approval of shareholders in a special resolution at a general meeting to be held.

The proposed distribution is expected to be completed by the end of this year.

“The proposed distribution of Calidus shares unlocks significant shareholder value in a somewhat unusual circumstance where we plan to distribute about £11.6-million worth of Calidus shares to our shareholders from Keras, which has a market capitalisation of about £8.6-million,” Keras CEO Russell Lamming said in a statement issued on Tuesday.

Calidus is developing the 1.25-million-ounce Warrawoona gold project in the Pilbara of Western Australia.

Keras’ total Calidus shareholding post the publication of a prefeasibility study, which is expected at the end of July, will be 724-million shares.

Each shareholder will still retain their current shareholding in Keras with direct exposure to the Nayega manganese project, in Togo.

“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.

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.”

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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