Caracal Gold PLC on Thursday said it has raised $1 million through the issue of secured convertible loan notes to Orca Capital GmbH and the proceeds have been drawn down.
The East Africa-focused gold producer has granted Orca an option to subscribe for up to a further $4 million of loan notes.
Caracal said the loan notes are due January 21, 2027, and will accrue interest at a rate of 8% per year.
It added that proceeds will be used to fund general corporate requirements and working capital.
Caracal also said that Philoro Global Trading AG has confirmed its ongoing support for the company and Kilimapesa. It added that an agreement is expected ‘in due course’, which will provide short term funding as well as an extension to the existing financing announced in December.
Chief Executive Robbie McCrae said: ‘We are very pleased to see the continuous support and trust from Orca Capital. This additional financing is a vote of confidence in the Company as we seek to restructure our financing arrangements.’
Shares in Caracal were up 2.0% to 0.36 pence each in London on Thursday morning.
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