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Caracal Gold PLC on Monday said it is seeking legal advice on its ongoing negotiations with Cynergy Global Ltd, and announced the results of fundraising as cost pressures ramp up.
The East Africa-focused gold producer said it has raised £440,000 by way of a subscription, issuing 146.7 million shares at 0.30 pence each.
Each subscriber will be issued with one warrant for every new subscription share, with an exercise price of 0.42p each. Warrants will expire three years from the admission of subscription shares to trading, and the funds will be used for working capital purposes.
Caracal Gold also on Monday said it has agreed a loan from Chief Executive Officer Robbie McCrae totalling $100,000, as well as a further $100,000 loan from Non-Executive Director Stefan Muller. The final repayment dates for the loans will be December 31, 2026, accruing interest at 10% a year.
Caracal added that it is now taking legal advice on its dispute with Cynergy, in order to explore its options in recovering its shares in subsidiary Caracal Holdings Ltd.
Their prior agreement entailed Cynergy receiving a 25% stake in Caracal Holdings, conditional on Caracal’s receipt of a second tranche payment of $500,000. Cynergy received the shares in June 2024, but Caracal has not yet received the second tranche payment.
Caracal Gold in early January reported Cynergy intended to renegotiate the terms of its investment, on the back of due diligence queries related to Caracal subsidiaries. At the time, Caracal had said it was under ‘significant cash flow pressure and distress’, and would be looking at all available funding options.
Shares in Caracal Gold are currently suspended in London.
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