Aim-listed Keras Resources has raised £350 000 through the placing of 87.5-million ordinary shares of 0.1p each at a price of 0.4p a share.
This is the company’s first capital raise since October 2017.
Nonexecutive directors David Rees and Brian Moritz have also agreed to convert £458 900 in loans due to them, primarily in respect of cash advanced to the company as working capital loans, into new ordinary shares of the company.
As such, the company now intends to issue 114.7-million ordinary shares to directors, with the placing shares and director conversion shares representing 8.12% of the company’s issued share capital.
The capital raised will be used to fund the costs associated with the proposed distribution of the company’s shareholding in ASX-listed listed Calidus Resources and for ongoing working capital purposes.
Keras CEO Russel Lamming, on Tuesday said the year, to date, had been “highly productive”.
The rest of the “transformational” year will see the proposed demerger of the company’s 724-million Calidus shares, in tandem with its transition from explorer to producer.
On receipt of the exploitation permit for Keras’ Nayega bulk sample plant, which has the capacity to produce 75 000 t/y of beneficiated manganese, the company plans to expand and improve the plant to add more value and increase production.
“The intention is to fund this in conjunction with an offtake agreement rather than equity,” Lemming said, adding that Keras continues to engage with the Togolese authorities with respect to the Nayega permitting.