Keras Resources completes acquisition of gold project in Western Australia

Gold miner Keras Resources completed the acquisition of the Klondyke gold project in Western Australia in order to consolidate the company's presence in the Warrawoona Greenstone Belt and become a significant producer in the region.

The company also bought Haoma Mining’s right to mine and option to purchase agreement in the Pilbara region in Western Australia.

The Klondyke acquisition will be paid with AU$1.42m (£800,000) in cash and the rest from the issue of 100m shares of 0.1p each at a price of 0.62p to be admitted to trade on AIM on 7 October.

To fund the deal, the company entered into finance agreement with a consortium of investors with US$2m (£1.5m) available through a drawdown with a maturity date of six months after the initial drawdown at an interest rate of 10% per half year.

Klondyke mine has 7.5km demonstrated resource potential with a drill programme to commence immediately to understand the geology and confirm historic results.

Managing director Dave Reeves said the acquisition of the Klondyke project and the purchase agreement has created a critical mass of mineralised lease area which underpinned the company’s intention to be to a stand-alone owner-operated gold miner.

Shares in Keras Resources were down 3.6% to 0.603p at 0846 BST.