Caracal Gold PLC (LSE:GCAT) said efforts to get funding for an expansion of the Kilimapesa gold mine in Kenya are progressing well and have reached the final documentation phase.
A prospectus was lodged with the FCA in April and is awaiting approval.
In the three months to June, Caracal said it mined 38,011 high-grade tonnes from the open pit at a grade of 2.51 g/t alongside 18,394 low-grade tonnes from the open pit. Underground operations remain on care and maintenance.
Sales totalled 1,645 oz of gold at an average price of US $1,933 per oz and sustaining cost of US $1,218 per oz.
Robbie McCrae, Caracal’s chief executive, said: "After a difficult first quarter it has been great to see Kilimapesa run in a steady state over the second quarter. The production numbers confirm that the operation is running well.
“Activities to secure the Kilimapesa expansion funding have progressed well and the transaction is into the final documentation phase which when complete means we will announce a financing deal and move to the drawdown of the funds.”