Caracal Gold PLC (LSE:GCAT) has entered into a new US$1.55 million financing agreement that aims to support development work at the Kilimapesa project, in Kenya.
The small-cap gold firm said the proceeds would support Phase 2 of the Minopex work program, maintenance and expansion capex.
It also boosts the company’s cash position and covers costs related to an ongoing process for a larger ongoing expansion financing process, and covers other operational expenses.
"The funds allow us to bring momentum back to the Kilimapesa expansion project and to complete the expansion funding process,” said chief executive Robbie McRae.
“The results of the 1st Phase work completed by Minopex have confirmed the robust economics of the Kilimapesa expansion project and the decision to push ahead with parts of the expansion whilst we finalise the expansion funding is good news for Caracal and Kilimapesa stakeholders."
The new facility is with Koenig Vermoegensverwal MBH and it sees repayments made monthly – being the higher of US$50,000 or 50% of the free cash flow of the company.
A separate US$150,000 loan is meanwhile also being provided by chief executive Robbie McCrae, this loan has a final repayment date of 31 December 2025 and accrues interest at the UK base rate plus 10%.