Published: February 2, 2016 |

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Keras Resources, formerly known as Ferrex, saw shares advance as it brought in £563,889 via a loan deal to get the Grants Patch Gold Tribute Project in Western Australia into production in the second quarter of 2016.

The loan note includes an 8 percent redemption premium and a 10 percent coupon is payable straight away.

In addition, Keras will issue £1 worth of warrants to subscribe for new Keras shares.  The warrants are exercisable at 0.5p and are valid for two years.

The new gold venture is a five year tribute agreement with Paddington Goldfields and will initially produce 30,000 tonnes per month from two shallow laterite gold pits.

Keras MD Dave Reeves, who subscribed himself for around £194,000 of the notes and now has 10.6 percent of the capital,  said the funds should enable the firm to be in a cashflow positive position next quarter.

“We specifically wanted to keep away from issuing equity so close to production to minimize dilution to existing shareholders and the board have once again demonstrated their commitment to the company and belief in its prospects by participating.

“Since acquiring the project in November 2015, we have already hit the ground running.  Initial fieldwork is already underway, and importantly this funding will help us target the first two shallow laterite pits, where no pre strip is required therefore keeping pre-production costs low, and develop them for processing to provide the first four to five months of production.

“We are initially targeting production of 20,000 to 30,000 ounces of gold per annum at AISC C3 costs (including royalty) of c.AUD 1,200/oz, which when looking at the current gold price in Australian dollars of c.AUD1,600/oz, leaves an attractive margin proposition per ounce.

“We look forward to reporting on our developments over the next few months as we advance Keras towards becoming a production company.”

Source: (February 1, 2016) Proactive Investors

About Keras Resources
Keras Resources Plc is an AIM listed resource pre-production and development company with assets in Australia and Africa. The Company is focused on bringing low capex deposits, which benefit from proximal established infrastructure, into production to facilitate the development of larger opportunities with minimal dilution.

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