Keras Resources has announced the acquisition of the Klondyke gold project and consolidation of the Warrawoona Greenstone Belt along with its intention to dual list on the ASX and a board re-structure.
The group says this is in line with its strategy to become a significant gold producer in Western Australia.
- Low cost acquisition of 100% of Klondyke gold project and right to mine contiguous tenements provides control over the Warrawoona Greenstone Belt, a prospective gold region with 7.5km of strike and demonstrated resource potential:
* Klondyke has a scalable JORC compliant resource of 5.6Mt @ 2.08g/t for 374,000 ounces - only covers 2km of the 7.5km strike, and is also open at depth;
* Reached agreement with Haoma Mining NL ('HML') for a Right to Mine and Option to Purchase Agreement on tenements contiguous and near to Klondyke, excellent discovery potential as demonstrated by high grade drill results summarised later in this document
* Transactions represent the first consolidation of this Greenstone Belt
- Low cost, four phase programme to confirm the historic drilling results and assess the feasibility of a stand-alone open-pit gold mining operation to commence shortly
- Existing tribute mining operations at Wycheproof are continuing ahead of schedule and under budget due to the adoption of revised mining and grade control protocols
- Intention to dual list on the Australian Stock Exchange and board restructuring under way to reflect the increased focus on Australian gold
- Bridge Facility of US$2million secured to enable completion of acquisition
Keras managing director Dave Reeves said, "The acquisition of Klondyke and the agreement with HML will elevate Keras to a stand-alone, owner-operated gold miner in addition to its current tribute miner model.
"We are committed to maximising value for shareholders and since entering the West Australian gold industry via tribute mining agreements in Q4 last year, we have been evaluating opportunities which will enable us to diversify our operational risk and increase the returns from our investment.
"We believe today's transactions, which combine the Arcadia and HML tenements and therefore represent the first consolidation of Warrawoona Goldfield mark a transformational step in achieving this goal. "Based on significant interest we have received from investors in Australia we are pursuing a dual listing on the ASX. Importantly, strong investor appetite for Australian gold stocks on the ASX positively impacts valuations and we believe this will benefit all shareholders, both in London and Australia, in the future.
"This will also provide us with the capital to refinance the acquisition Finance Facility with less dilution for existing shareholders.
"Our board supports our Australian gold focus and I would like to thank its members for also enabling our board restructure and in particular. Roy Pitchford's contributions since the formation of the company, through the Admission process and beyond are greatly appreciated.
"We are entering a new and exciting phase for Keras and this strategy will be supported by our tribute operations which have been scrutinised by the Board to ensure profitability going forward.
"I am pleased to say that the changes we have made are already bearing fruit at Wycheproof. The changes to our corporate identity and Board reflect our genesis and we look forward to keeping shareholders abreast with updates in the near term."