TIDMKRS
RNS Number : 7503F
Keras Resources PLC
17 July 2019
Keras Resources plc / Index: AIM / Epic: KRS / Sector:
Mining
17 July 2019
Keras Resources plc ('Keras' or the 'Company')
Publication of Warrawoona Gold Project Pre-Feasibility Study
&
Award of 265 Million Shares in ASX-listed Calidus Resources
Ltd
Keras Resources plc, the AIM listed mineral resource company, is
pleased to announce that Calidus Resources Limited (ASX:CAI)
('Calidus') has published a Pre-Feasibility Study ('PFS')
demonstrating the commercial viability of the Warrawoona Gold
Project ('Warrawoona' or the 'Project'). Subsequently, Calidus has
issued the outstanding 265,000,000 Performance Shares in Calidus to
Keras.
Keras now holds 723,750,000 fully paid ordinary shares,
representing approximately 39.1% of the issued share capital of
Calidus. As previously announced on 2 July 2019, Keras intends to
distribute its Calidus shareholding pro-rata to Keras shareholders,
with the distribution expected by the end of 2019.
Calidus also published a Maiden JORC compliant Probable Ore
Reserve of 8.9Mt @ 1.5g/t for 418koz Au at the Klondyke Prospect
('Klondyke'), located in the centre of Calidus' 1.25 million-ounce
JORC compliant gold resource at Warrawoona in the Pilbara of
Western Australia.
Highlights
-- Calidus publishes PFS demonstrating the commercial viability of the Warrawoona Gold Project
-- Maiden JORC compliant Probable Ore Reserve of 8.9Mt @ 1.5g/t for 418koz Au at Klondyke
-- Keras' total Calidus shareholding of 723,750,000 shares is
currently valued at c.GBP12.78m(1) , All Calidus shares are now
free trading on the ASX and will be distributed to Keras
shareholders post regulatory approval processes
Russell Lamming, Chief Executive Officer of Keras, commented,
"The publication of the excellent PFS results is a major milestone
for Calidus as it continues to add value to the highly prospective
Warrawoona gold project in Western Australia. The publication
facilitates the issuance of the final Performance Shares increasing
Keras' strategic interest in Calidus to 39.1% currently valued at
c.GBP12.78m. and assists us in distributing the Calidus shares to
our shareholders.
"As noted in our announcement on 2 July, the Company intends to
distribute its Calidus shareholding pro-rata to Keras shareholders
through a capital reduction and demerger process. This process
requires the approval of shareholders, UK and Australian tax and
regulatory authorities and subsequent approval by the Court. We
believe shareholders will have a significant benefit by having
direct exposure to this exciting Australian gold company as it
moves towards development. I look forward to updating shareholders
as soon as practicable as we continue with this value-adding
initiative."
HIGHLIGHTS FROM CALIDUS' ANNOUNCEMENT
Project Economics
-- NPV (pre-tax 8%) A$151m and IRR 40% based on a A$1,800/oz study gold price
-- NPV (pre-tax 8%) A$234m and IRR 56% based on A$2,000/oz spot price
-- NPV (post-tax 8%) A$108m and IRR 33% based on a A$1,800/oz study gold price
-- NPV (post-tax 8%) A$168m and IRR 47% based on A$2,000/oz spot price
-- LOM pre-tax cashflow A$367m
-- Payback 26 months from production start based on a A$1,800/oz study gold price
-- Payback 19 months from production start based on a A$2,000/oz spot price
-- Capital cost of A$95m including contingency
-- All-In Sustaining Costs (ASIC) of A$1,159/oz for Life of Mine costs from production start
Conservative Resource to Reserve conversion applied to minimise
grade risk (section 9.3)
-- Open Pit - 23% dilution, 5.0% ore loss to resource model
-- Underground development - 10% dilution
-- Underground stoping - 0.5m dilution skin, 80% stope recovery
(in-situ pillars) and 5% ore loss
Ongoing De-risking of Resource
-- Initial Resource infill drilling campaign completed - first
tranche of results announced 20th June 2019 and in line with
expectations with a strategy to upgrade to Measured Resource for
payback period
-- Drilling resumed in July 2019, with an initial focus on
infill and extensional drilling around the Klondyke open pit and
underground
Project Parameters
-- 12-month processing plant construction, infrastructure and
mine development pre-production phase, followed by 6-year mine
life
-- Average 97,000oz per annum gold production over the 6-year
mine life via a 2mtpa conventional cyanide in leach ("CIL")
processing circuit with single stage crush and SAG mill
Maiden Reserve (JORC) for Klondyke Open Pit and Underground
-- Total open pit and underground Probable Mining Reserve at Klondyke 8.9Mt @ 1.5g/t for 418koz
-- Reserve material represents 75% of milling inventory
(1) Using the Calidus closing mid-market price of A$0.031 per
Ordinary Share on 16 July 2019, being the last dealing day prior to
this announcement.
*An exchange rate of 0.57 GBP to 1 AUD has been used for figures
contained in this RNS.
The information in this RNS has been extracted from the ASX
announcement made by Calidus Resources Limited on 21 March 2019. To
view a full version of the Calidus announcement, which includes
figures and maps, please click here:
https://www.calidus.com.au/investors/asx-announcements/. For more
information on Calidus and Warrawoona, please visit
www.calidus.com.au.
For the purposes of MAR and Article 2 of Commission Implementing
Regulation (EU) 2016/1055, this announcement is being made on
behalf of Russell Lamming, Chief Executive Officer. This
announcement contains inside information for the purposes of
Article 7 of Regulation (EU) 596/2014.
**ENDS**
For further information please visit www.kerasplc.com, follow us
on Twitter @kerasplc or contact the following:
Russell Lamming Keras Resources plc info@kerasplc.com
Nominated Adviser / Joint
Broker
Ewan Leggat / Charlie SP Angel Corporate Finance +44 (0) 20 3470
Bouverat LLP 0470
Financial PR
Isabel de Salis / Cosima +44 (0) 20 7236
Akerman St Brides Partners Ltd 1177
Notes
Keras Resources plc is focused on building a strategic portfolio
of resource assets. The Company provides investors with exposure to
a portfolio of development assets, including manganese, cobalt and
nickel in Togo, West Africa. It also has a significant interest in
Calidus Resources Limited ('Calidus'), a highly prospective gold
exploration and development company in Australia, which is
currently undertaking a Pre-Feasibility Study at its Warrawoona
gold project. Keras benefits from a highly skilled management team,
which has extensive operational experience in Africa and Australia
and proven success in advancing assets up the value curve.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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