Caracal Gold PLC - East Africa-focused gold producer - Secures investment to fund the Kilimapesa expansion project from a strategic investor. Explains that a three phased investment will be made by Cynergy Global Ltd - a Mauritius-based investment group with regional presence in power generation, oil & gas exploration & development, aviation and commercial fishing - into Caracal and its subsidiaries. Phase 1 will see USD1 million payable in two tranches of USD500,000 in exchange for 25% of Caracal. Phase 2 will see a further USD5 million injection, USD2 million in equity and USD3 million in debt in exchange for an additional 10% of Caracal. In the event of Caracal undertaking a fundraise by way of share placement in the future, Phase 3 would see Cynergy granted the option to subscribe for up to 29.9% of Caracal's share capital.
Chief Executive Robbie McCrae says: "We are very pleased to welcome Cynergy as strategic investors and as our partners. The investment....is a great leap forward towards completion of the expansion of the Kilimapesa Gold Mine unlocking the value at Kilimapesa for all of stakeholders."
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By Jeremy Cutler, Alliance News reporter
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Caracal Gold (GCAT)