Caracal Gold PLC shares dropped on Tuesday, after it said it will no longer be proceeding with a $10.5 million financing deal.
Shares in the London-based East Africa-focused gold producer were down 26% to 0.59 pence each in London on Tuesday around midday.
Back in November, Caracal Gold said it had secured a conditional non-dilutive financing of $10.5 million through a pre-paid gold purchase agreement with OCIM Metals & Mining SA.
On Tuesday, however, Carcal said the agreement will not be proceeding, as the long stop date of December 31 has passed.
It explained there is an unfulfilled condition that would have provided OCIM security over the mining licence for Caracal’s flagship Kilimapesa gold mine in Kenya, and OCIM have not extended the long stop date.
Chief Exedcutive Robbie McCrae said: ‘We are disappointed with the OCIM decision not to continue on the final condition precedent and close the transaction. The Caracal team worked tirelessly from May 2022 and the company and projects passed detailed legal, financial and technical due diligence.
‘The robust fundamentals of the Kilimapesa expansion project remain the same, the operations and project team are in place, the support from all stakeholders in Kenya and Tanzania is strong, and the lessons learnt from the process with OCIM have been constructive.’
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