16th Jun 2015 09:11
LONDON (Alliance News) - KEFI Minerals PLC said Tuesday that it has raised GBP2.9 million in a placing and subscription for 362.5 million shares at 0.8 pence each, which it will use to fund the next phase of development of its Tulu Kapi project in Ethiopia and on further exploration.
Shares in KEFI are trading down 5.6% at 0.850 pence Tuesday morning. Prior to the new issuance, KEFI had 1.38 billion shares and a market capitalisation of GBP12.4 million.
The company also has granted warrants to Brandon Hill Capital Ltd to subscribe for 12.16 million shares, and to Beaufort Securities Ltd warrants to subscribe for 2.34 million shares, exercisable for three years at the placing price.
"As a result of the placing, the progress being made in Ethiopia and the expected finalising of project finance in the third quarter of 2015, we remain on track to commence major construction work later in the year and be in production in 2017," said Executive Chairman Harry Anagnostaras-Adams.
In a statement ahead of the company's annual general meeting on Monday, KEFI had said it is "well on the way" towards planned gold production in 2017, with two advanced projects that it expects to generate cash flow and provide solid foundations for growth.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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