Caracal Gold PLC (LSE:GCAT) said it has secured non-dilutive financing of US$3mln through a pre-paid gold purchase agreement with Philoro Global Trading AG.
This follows the securing of an initial US$10.5m conditional non-dilutive financing through a pre-paid gold purchase agreement with OCIM, a European asset trader, announced on 29 November 2022.
Caracal is an East African gold producer with over 1.3mln ounces of JORC-compliant gold resources in place at the Kilimpesa project in Kenya.
The total contract price of the latest financing will be made available in a single tranche of US$3mln to be drawn on or before 31 December 2022.
The contract price is repayable in six equal instalments commencing 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.
"This second non-dilutive financing further strengthens Caracal's cash position bringing the total raised in the last two weeks to US$13.5mln,” said Robbie McCrae, chief executive of Caracal in a statement.
“Attracting these two new high-calibre partners, OCIM and Philoro, is testament to the vast potential Caracal offers as it focuses on becoming a plus-50,000 ounce per annum producer with plus-three million ounces in resources. We can now concentrate on the final push to deliver on our initial production target of 24,000 ounces per annum," he added.