Caracal Gold PLC on Thursday said it has completed a £351,000 share subscription, and appeared optimistic for its projects’ future resources estimates.

The East Africa-focused gold producer said it has raised £351,000 through a subscription of 117.0 million shares at £0.003 each. It said the subscription participants were ‘high-net-worth individuals.’

Caracal said these individuals will be granted warrants carrying a 0.6p per share exercise price; the warrants are valid until December 2024.

Shares in Caracal closed down 6.7% at 0.35 pence on Thursday in London.

Caracal will use the subscription proceeds to fund the transactional costs pertaining to the expansion of its Kilimapesa Hill project in Kenya. It is currently finalising the funding for this.

The company noted that certain subscription participants were introduced by Non-Executive Director Stefan Muller. Muller’s company, Deutsche Gesellschaft fur Wertpapieranalyse GmbH, will be paid commissions worth 5% of the proceeds for the amounts introduced, and 6% of the proceeds on $1 million Caracal received from Orca Capital GmbH via convertible loan notes announced in February.

Over the last 18 months, Caracal said, it has built a portfolio hosting a total of over 1.3moz of JORC-compliant gold resources across four projects in Kenya and Tanzania. These comprise 14.06 metric tonnes, measured & indicated and inferred, at Kilimapesa, and Red Ray in Kenya; and 12.3 metric tonnes at Voyager Mentelle and Leeuwin Grange in Tanzania.

In light of the exploration work completed during the period, Caracal said it is ‘confident’ that it will be able to ‘significant increase the resources in its project areas’ once it restarts exploration drilling.

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