Keras Resources raises £0.6m to support gold project and float on ASX

AIM-listed Australian gold miner Keras Resources has raised £600,000 in equity to support ongoing exploration work and to support plans to float on the Australian Stock Exchange.

The miner placed 171.4m shares, representing about 10.6% of its issued share capital, at a price of 0.35p with new and existing investors.

Managing director Dave Reeves said the company is currently finalising plans for a potential listing on the Australian Stock Exchange, which will support its London listing while reflecting the company's growing operational presence in Australia.

The funds raised are to support ongoing exploration and development work at the Klondyke gold project in the East Pilbara district of Western Australia, which has a current resource estimate of 5.6m tonnes at 2.08 grammes per tonne of gold for 374,000 ounces with significant further upside potential indicated.

Funds will also be used to retire 12-month loan notes secured in February last year.

Reeves added: “The current environment for gold is positive and investor appetite for projects such as ours appears evident. Alongside this, we remain confident that our Nayega manganese project in Togo, West Africa, could deliver significant upside and remain optimistic of its development potential."

The proceeds of the placing will be received in two equal tranches of £300,000, the first within five working days of the transaction and the second with ten days.

The first tranche of 85.71m shares will be admitted to trade on AIM on the 2 February and the second tranche will trade on 9 February.

Following admission, the company will have 1.61bn shares in issue with voting rights, with none held in treasury.

Shares in Keras Resources were down 3.56% to 0.434p at 1110 GMT.