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Keras completes acquisition of Klondyke gold project


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Keras completes acquisition of Klondyke gold project

Keras Resources Plc has completed the acquisition of Arcadia Minerals Pty. Ltd. and its Klondyke gold project in Western Australia, the London-listed explorer said Oct. 5.

The company has also completed an agreement with Haoma Mining NL that gives it the right to mine and option to purchase tenements that are contiguous and near the Klondyke project.

Keras is paying A$1.4 million in cash and will issue 100 million Keras shares.

Arcadia will retain a 2.5% royalty capped at A$3.5 million that takes effect once production reaches 20,000 ounces.

The Haoma deal, which covers seven tenements spanning 650 hectares, cost Keras A$250,000 for a five-year right to mine and an option to acquire the tenements within that period for about A$1.3 million combined cash and convertible note.

To fund the acquisitions, Keras secured a US$2 million bridge funding facility with a consortium of investors arranged by Riverfort Global Capital Ltd.

The facility has a maturity date of six months after initial drawdown and an interest rate of 10% per semiannum.

Additionally, Keras said that it plans to pursue a secondary listing on the ASX due to strong interest from Australian investors.

The Klondyke project hosts a JORC-compliant resource of 5.6 million tonnes at 2.08 g/t for 374,000 contained gold ounces, which Keras said only covers 2 kilometers of the 7.5-kilometer strike and is also open at depth.

Keras plans to immediately begin a drill program to better understand the geology and confirm historical results as well as undertake detailed mapping and a review of the entire area.