15th Jun 2018 10:59
LONDON (Alliance News) - KEFI Minerals PLC on Friday said it has raised GBP3 million which will contribute towards closing project financing for its Tulu Kapi gold project in Ethiopia.
KEFI placed 120 million new shares at 2.5 pence each to raise the cash. On Friday, shares were trading at 2.64p, down 25%.
Once expenses are taken into account KEFI will have raised around GBP2.8 million, and it said the money will mainly be used to enable the "procedural and documentary" closing of Tulu Kapi's USD260 million project financing.
On Monday this week, KEFI said it had secured further project funding after an Ethiopian investment syndicate took a 30% stake in subsidiary KEFI Minerals Ltd in return for USD30 million.
Chairman Harry Adams said: "We are pleased to secure this funding and the support of our contractors and management. It is planned that the financing of the Tulu Kapi gold project will be entirely at the project level, with KEFI retaining a beneficial ownership interest in the order of 54% and the balance being held by the Ethiopian government and other Ethiopian investors.
"The placing and subscription we have announced today is expected to provide KEFI with the funds to enable it to close the Tulu Kapi project financing, subject to approvals by all stakeholders and formal documentation. I look forward to providing updates on progress over the coming months."
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