Caracal Gold PLC (LSE:GCAT) has announced that a previously agreed pre-paid gold purchase agreement will now no longer be implemented.
The company cited an unfulfilled condition precedent to the agreement related to the mining licence for its Kilimapesa gold mine in Kenya.
"We are disappointed with the OCIM decision not to continue on the final condition precedent and close the transaction,” said Robbie McCrae, chief executive of Caracal in a statement.
“The Caracal team worked tirelessly from May 2022 and the company and projects passed detailed legal, financial and technical due diligence. The robust fundamentals of the Kilimapesa expansion project remain the same, the operations and project team are in place, the support from all stakeholders in Kenya and Tanzania is strong, and the lessons learnt from the process with OCIM have been constructive," he added.
The company has over 1.3 mln ounces of gold in resource, and remains in a strong position.
"With funding secured from Philoro Global Trading AG and other proposals received for similar non-dilutive financing, we will move quickly to replace the OCIM funds.
"We would like to thank OCIM for considering Caracal and Kilimapesa and wish them all the best on future ventures," concluded McCrae.