Keras Resources reports progress on Togo agreement

Keras Resources announced significant progress under its cooperation agreement with the Republic of Togo on Friday, as the state-owned mining company Société Togolaise de Manganèse (STM) had secured a mining permit for the Nayéga manganese project, enabling the start of full-scale operations.

The AIM-traded firm said STM had awarded the mining and logistics contract for Nayéga to Carrieres Mines Travaux Publics (CMTP), following a competitive tender overseen by Togo’s public procurement authority.

CMTP, which previously managed the 2018 bulk sampling at Nayéga, would oversee both the mining and processing activities as well as transportation of upgraded ore to the port of Lomé.

STM had also entered into a sale and purchase agreement with Fujax Group for the first 400,000 tonnes of manganese ore produced.

Keras, which introduced Fujax to STM, is a signatory to the offtake deal under the terms of its 2023 cooperation agreement with the state.

As part of that agreement, Keras said it would receive a 1.5% advisory fee and a 6.0% brokerage fee based on gross revenue from Nayéga.

The advisory fee would apply for three years, while the brokerage fee would apply to either 3.5 years or the first 900,000 tonnes of ore sold, whichever comes first.

STM had been active on site since June last year, and planned to begin mobilisation of mining operations imminently.

“The award of the Nayéga exploitation permit and the Offtake is certainly welcome and we look forward to further information related to the mobilisation of CMTP and on the re-development of Nayéga,” said interim executive chairman Russell Lamming.

“The cashflow due under the cooperation agreement will underpin the progress and associated cash flows from the US operations.

“I look forward to updating shareholders in the near term.”

At 1012 BST, shares in Keras Resources were up 15.38% at 1.5p.

Reporting by Josh White for Sharecast.com.