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Shares in Keras Resources jump after corporate update

11:20, 17th January 2020
Abraham Darwyne
Company News
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Keras Resources (KRS) FOLLOW shares jumped after it released an update on the progress of its Nayega Manganese project in Togo, West Africa.

Keras told investors that CEO Russell Lamming is meeting with authorities to close the permitting process at Nayega so it can meet its target to start production in Q1 2020.

The company said it is finalising contracts with third party service providers, and securing key management in Togo.

Keras also announced a restructuring of its 85% interest in Société Générale de Mines SARL (SGM) required to comply with the permitting process at the Nayega project.

Mr. Lamming said, "The past six months have been transformational for Keras.”

“With the notification in October 2019 of a decree authorised by the Togo Council of Ministers permitting SGM to undertake large scale mining at the Nayega, the successful demerger of the Company's interest in Calidus in November 2019 and the completion of the restructuring process, we are now positioned to transition into a manganese producer.”

Shares in Keras Resources were trading 30% higher at 0.195p on Friday

KRS price chart

Keras also proposed a 1 for 10 share consolidation to make it more attractive to "institutional investors looking at cashflow positive mining companies", and issued an option scheme granting 90 million options to executive management.

Mr. Lamming said: "We remain on track to commence commercial production in the first quarter of 2020. The underlying fundamentals of the business remain strong as we have an excellent standalone asset, which has installed capacity to produce 6,500 tonnes per month without any further capital.”

He added: “Furthermore, the Project has the unusual status of already being proved up through what was essentially a trial mining, processing and logistics exercise in the first half of 2019.”  

The Nayega Manganese project is estimated to have a Mineral Resource of 13.5Mt @ 11.1% manganese and an Ore Reserve of 8.48Mt @ 14.0% manganese.

The company also said it is giving up its rights to the Kamina Cobalt & Nickel project and winding down its subsidiary Kamnico SARL.

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