Business
Placing to Raise £1,250,000
Placing to Raise £1,250,000.
About this update from Keras Resources Plc
[{"type":"text","content":"\n \nRNS Number : 2844V Keras Resources PLC 15 April 2016 \n\nKeras Resources Plc / Index: AIM / Epic: KRS / Sector: Mining\n15 April 2016\nKeras Resources Plc ('Keras' or 'the Company')\nPlacing to Raise £1,250,000 \n \nKeras Resources plc, the Australian gold mining company, is pleased to announce that it has raised £1,250,000 before expenses through the placing of 113,636,364 new ordinary shares 0.1p each (the 'Placing Shares') at a price of 1.1p per Placing Share to new and existing shareholders (the 'Placing'). The Placing Shares were placed by the Company's broker, Beaufort Securities Limited. \n \nHighlights\n· Significant shareholder support for the Placing to enable the Company to accelerate the development of the Australian gold portfolio\n· Proceeds will be used to fast-track production at the high grade Prince of Wales Underground Mine ('POW') located 30km north of Kalgoorlie where the Company has a five year Tribute Agreement with Paddington Goldfields ('Paddington'); and the Lindsay's Mine ('Lindsay's') located 65km NNE of Kalgoorlie where Keras has a profit share agreement with KalNorth Gold Mines Limited ('KalNorth').\no POW has a resource of 154,000t at 8.0g/t and an exploration target of 500,000t at 10g/t for 160,000 oz and is expected to produce 15,000 to 20,000 ozs of gold at an all in cost of less than A$900/oz. At the current gold price of A$1,650/oz, this mine alone is budgeted to produce approximately A$1 million of pre-tax cashflows per month;\no Lindsay's Project incorporates total open pit and underground resources of 215,100 ounces Au at a grade of 1.7g/t Au which includes the high grade Parrot Feathers deposit comprising 401,000t at 4.2g/t Au for 54,000 ounces Au; and\no The proceeds will bring forward the steady state production level of 30,000 to 40,000 ounces per year in H1 2017.\n \nKeras Managing Director Mr. Dave Reeves said, \"We are delighted to have received such strong support from our shareholders for this Placing. With these funds secured we can now accelerate production at these two key assets in the portfolio, namely the Prince of Wales and Lindsay's mines. Given that our tribute agreement over the latter is for a period of five years, it is important for us to fast-track its development a...