Caracal Gold revises terms on acquisition of Nyakafuru project

(Alliance News) - Caracal Gold PLC on Tuesday announced a revision to its agreement to acquire ...

Alliance News 31 May, 2022 | 9:45AM
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(Alliance News) - Caracal Gold PLC on Tuesday announced a revision to its agreement to acquire Tyacks Gold Ltd, the holders of several licences in Tanzania collectively referred to as the Nyakafuru project.

The agreement - first signed in December - has been revised following due diligence by the East Africa-focused gold producer, which will allow for extended completion timing and agrees on interim process steps to allow work on the ground to start immediately.

Carcal will pay USD500,000 immediately, and then USD1.0 million on or before the end of July.

Should the acquisition be completed, it will double Caracal's total gold resources to 1.33 million ounces prior to the impending resource update at Kilimapesa. Nyakafuru is amendable to development as a large scale conventional open pit operation and carbon-in-leach processing plant.

The acquisition remains conditional on gaining required in-country approvals, and should they be granted, drilling is on-track to take place early in the fourth quarter of 2022.

"Since we reached the initial agreement with the vendors, we have been working collaboratively together to reach the stage where we can begin to advance the project. We have worked hard to identify and acquire a project that meets our stringent investment criteria, namely offering near term development opportunity and significant value upside whilst complementing our current portfolio," said Chief Executive Officer Robbie McCrae.

"Nyakafuru meets the brief, with proven high-grade shallow gold resources and historical mining and development studies. Nyakafura will more than double our total resource base, provide exploration potential and allow for accelerated mine development through a conventional open pit operation and conventional processing plant."

Shares in Caracal Gold were 6.8% higher at 0.77 pence on Tuesday in London.

By Dayo Laniyan;

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Caracal Gold PLC 0.70 GBX 0.00 -

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