Can anything shut down the Gold rally?
LONDON - Caracal Gold Plc (LSE:GCAT) has entered into a four-month exclusivity agreement with Tanzanian mining company Pumba Resources Limited to evaluate gold prospecting licenses in Tanzania, the company announced Friday in a press release.
The agreement grants Caracal exclusive rights until November 30, 2025, to conduct due diligence on Pumba’s portfolio of gold prospecting license applications located in the Geita and Singida regions of Tanzania. Following satisfactory review, Caracal will have exclusive rights to finalize terms for a potential exploration and mine development joint venture.
The licenses cover approximately 30 square kilometers and include PL 30889/2025, PL 30761/2025, PL 30759/2025, and PL 32143/2025. These areas are situated in regions that host major gold mining operations run by Anglogold Ashanti (NYSE:AU) Limited and Shanta Gold.
As part of the agreement, Caracal will issue Pumba Resources with ordinary shares valued at £50,000 at a price of 0.3 pence per share upon resumption of trading in Caracal’s shares on the London Stock Exchange (LON:LSEG).
Caracal Gold describes itself as an East African focused gold company aiming to increase production to over 50,000 ounces per annum and build a JORC compliant resource base of over 3 million ounces. The company currently operates the Kilimapesa Gold Mine in Kenya and is exploring the Nyakafuru Project in Tanzania.
The information was disclosed in accordance with the company’s obligations under Article 17 of the Market Abuse Regulation.
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