Business
Fundraising of £350,000 and Conversion of Loans
Fundraising of £350,000 and Conversion of Loans.
About this update from Keras Resources Plc
[{"type":"text","content":"\n \nRNS Number : 2943K Keras Resources PLC 27 August 2019 \n\nKeras Resources plc / Index: AIM / Epic: KRS / Sector: Mining\n27 August 2019\nKeras Resources plc ('Keras' or the 'Company')\nFundraising of £350,000 and Conversion of Director Loans\n \nKeras Resources plc, the AIM listed mineral resource company, is pleased to announce that it has raised £350,000 (before expenses) through the placing of 87,500,000 ordinary shares of 0.1p each (\"Ordinary Shares\") at a price of 0.4p per Ordinary Share (the \"Placing Shares\") (the \"Placing\"). \n \nAdditionally, David Reeves and Brian Moritz have agreed to convert £458,900 in loans due to them, primarily in respect of cash advanced to the Company as working capital loans, into new ordinary shares of the Company at the same price as the Placing Shares. As such, the Company intends to issue 114,725,000 Ordinary Shares to Directors (the \"Directors Conversion Shares\"). The Placing Shares and Director Conversion Shares represent approximately 8.12% of the Company's issued share capital as enlarged by the Placing and Director Conversion Shares.\n \nThe capital raised will be used to fund the costs associated with the proposed distribution of the Company's shareholding in Australian Securities Exchange ('ASX') listed Calidus Resources Ltd ('CAI') and for ongoing working capital purposes. The proposed distribution of the CAI shares requires shareholder and court approval. The amounts being capitalised are the only material debt owed by the Company and the capitalisation will therefore facilitate court approval of the capital reduction required to demerge the CAI shares.\n \nRussel Lamming, CEO of Keras Resources, said, \"The year to date has been highly productive and I believe the rest of 2019 will be transformational: the proposed demerger of our 724m Calidus shares, in tandem with our transition from explorer to producer (subject to the grant of an exploitation permit), will see significant value released to shareholders and manganese focussed Keras will become a cashflow positive mining company.\n \n\"The Nayega bulk sample plant has the capacity to produce 75,000 tons per annum of beneficiated manganese; on receipt of the exploitation permit, Keras plans to expand and improve the plant to add more value and inc...