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Keras raises ?0.31m to fund development at Nayega

By Josh White

Date: Wednesday 29 Jan 2020

Keras raises ?0.31m to fund development at Nayega

(Sharecast News) - Mineral resource company Keras Resources has raised £0.31m before expenses through a placing of 206,666,660 new ordinary shares at a price of 0.15p each, it announced on Wednesday.
The AIM-traded firm said the funds raised would be used to fast-track infrastructure development at the Nayega Manganese Project, held through its 85%-owned subsidiary Société Générale de Mines.

It said that development would include an order to start the fabrication of the 25,000 tonnes per month expansion plant, and to finalise a hydrogeological study to increase the water supply.

They would also secure storage facilities near Port Lomé to ensure the efficient export of beneficiated manganese ore, as well as be used for ongoing working capital.

Keras also announced the appointment of Shard Capital Partners as its joint broker, effective immediately.

It said discussions with third party off-takers were ongoing, with a view to securing prepayment and stockpile financing to minimise dilution as Nayega was developed.

"Post the completion of the corporate restructuring which created the platform to transition into a mining company, we are now focussed on delivering on the target of production in this first quarter of 2020," said chief executive officer Russell Lamming.

"Although production will commence immediately post completion of the permitting process, it is important that the long-lead items underpinning the expansion to 25,000 tonnes per month are ordered to ensure that we reach nameplate capacity by year-end.

"As such, the new plant will be ordered, and we will finalise the hydrogeological project to ensure sufficient water is available for the expansion."

In addition to on-site activities, Lamming said the company would be setting up a secure storage facility near Port Lomé to ensure that it could manage the export of manganese ore efficiently.

"It has been a busy start to the year, and we intend to maintain this momentum as we progress to the planned production rate of 25,000 tonnes per month by the end of 2020.

"Post the successful bulk sampling programme that proved up the mine to market project we have had significant interest from third party trading companies and end-users and are currently assessing the best financing option for all stakeholders."

He said the firm was continuing to work closely with all parties associated with the Nayega permitting process, as it looked to start production in the near future.

"I welcome the team at Shard Capital on board and look forward to updating shareholders on a consistent basis."

At 1013 GMT, shares in Keras Resources were up 1.52% at 0.16p.

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