Keras Resources (LON:KRS) – CORP: Acquisition of Klondyke Gold Project
Market Cap: £8.4m; Current Price: 0.6p
Transitioning to owner-operator gold miner
Keras Resources has completed the acquisition of the Klondyke Gold Project, which is the first step in the consolidation of the Warrawoona Greenstone Belt. A drill programme is to commence immediately to improve geological understanding and confirm historic results.
The consideration of the Klondyke acquisition will be settled via the payment of A$1.42m (£0.8m) in cash and the issue of 100,000,000 shares at 0.62p. The shares are subject to standard lockup and orderly trading terms.
The cash portion of the acquisition is being funded by a US$2m (£1.5m) facility with a maturity date of six months from drawdown, with an interest rate of 10% per semi-annum and a commitment fee of 5%. During the period before maturity the Investors can convert the principal amount of the loan at a 20% premium to Keras closing price on the date of drawdown. The Investors are also granted warrants totalling 25% of the Principal Amount with a 2 year term and a strike price of 130% of the 5 day value weighted average price ('VWAP') following financial closure
The first draw down will now take place and the Company has granted £389,350 worth of warrants to subscribe for new Ordinary Shares. The warrants are exercisable at a strike price of 0.8501p.
NORTHLAND CAPITAL PARTNERS VIEW: Keras Resource now has its first 100%-owned gold Project with the acquisition of the Klondyke Gold Project. This is expected to lead to the Company becoming an owner-operated gold miner, which will be a major step forward for the Company.
Premier African Minerals (LON:PREM) – CORP: RHA update
Market Cap: £6m; Current Price: 0.325p
RHA profitable by December
A review of the tungsten rich material at the RHA Tungsten Mine, located in Zimbabwe, has been completed and demonstrated that there is sufficient tonnage in both the open pit and underground operations to support a XRT ore sorter for ore sorting at a planned throughput rate of 39,000t per month. Target date for the installation is November this year.
The XRT is expected to be supplied on a toll basis and the Company is fully funded to complete the upgrade.
At 39,000t per month RHA is expected to produce c. 10,000 mtu of contained WO3 per month. At the net price of US$112/mtu that RHA is expected to receive, RHA will generate US$1.12m per month in gross revenue and an EBITDA of US$825,000 per month once the XRT is fully operational.
NORTHLAND CAPITAL PARTNERS VIEW: Positive developments for Premier African Minerals, the installation of the XRT ore sorter should allow the Company to improve grades, lower grades and increase throughput, all at no significant capital cost due to the XRT being used on a toll treatment basis. Prem is targeting the installation of the XRT in November and believes the mine could be profitable by the end of December.