Business
Nayéga Agreement & Strategic Update
Nayéga Agreement & Strategic Update.
About this update from Keras Resources Plc
[{"type":"text","content":"\n\nKeras Resources plc / Index: AIM / Epic: KRS / Sector: Mining\n \n18 May 2023\n \nKeras Resources plc ('Keras' or the 'Company')\n \nNayéga Agreement & Strategic Update\n \nKeras Resources plc (AIM: KRS) is pleased to announce that it has agreed with the Republic of Togo (the \"State\") on 17 May 2023 (\"Agreement\") on a way forward for the Nayéga Manganese project (\"Nayéga\") in Northern Togo.\n \nTRANSACTION OVERVIEW\n· Keras and the State have agreed that Nayéga is a Togolese strategic asset and the exploitation permit will be awarded to Société Togolaise de Manganèse, a Togolese incorporated company 100% owned by the State (\"STM\") and Keras will no longer pursue the Nayéga exploitation permit;\n· The Company will transfer all its intellectual knowledge on Nayéga to the State and provide advisory and brokerage services to fast track the development of Nayéga;\n· In addition Keras will initialise the process to liquidate its interest in SGM, the company through which Keras holds its interest in Nayéga;\n· The State will pay Keras a cash consideration of US$1.7m (one million seven hundred thousand United States dollars) (\"Cash Payment\") on 17 July 2023 and thereafter;\no Keras will be paid an advisory fee of 1.5% (one and a half percent) of gross revenue generated from the Nayéga mine for the provision of advisory services for 3 (three) years ; and\no Keras will be paid 6.0% (six percent) of gross revenue generated from the Nayéga mine for the provision of brokerage services for the lesser of 3.5 (three and a half) years or 900,000 (nine hundred thousand) tonnes of beneficiated manganese ore produced and sold from Nayéga.\n \n \nSTRATEGIC OVERVIEW\n· Keras has now completed its transition into a fully focussed North American business targeting the robust organic fertiliser market through Diamond Creek, the Company's high-grade organic rock phosphate mine located in Utah, wholly owned through Falcon Isle Resources LLC (\"Falcon Isle\");\n· The Cash Payment, after costs, will be used to fund the second US$800,000 tranche for the acquisition of Falcon Isle in July 2022, and for general working capital. The ongoing advisory and brokerage fees will significantl...