London-listed Caracal Gold’s Kenyan subsidiary Kilimapesa Gold has secured $10.5-million of financing through a prepaid gold purchase agreement with OCIM Metals & Mining, a group of privately held companies.
The total contract price of $10.5-million will be made available to Kilimapesa, subject to conditions, in two tranches, with the first $7-million being available for drawdown on or before December 31, and a second tranche of $3.5-million to be drawn down on terms to be agreed between the parties at a later date.
The proceeds from this financing will enable Caracal to be fully funded and to continue with the expansion of production at the Kilimapesa gold mine, in Kenya, to the targeted rate of 24 000 oz/y, which is expected by March next year.
The funds raised will also be used to complete a Phase 2 exploration programme on Caracal’s Nyakafuru project, in Tanzania, to ultimately advance a preliminary economic assessment on the project.