21st Feb 2019 13:11
LONDON (Alliance News) - KEFI Minerals PLC said on Thursday it will raise GBP969,000 through a placing as part of funding arrangements for the scheduled activities in the first six months of the Tulu Kapi gold project development.
Shares in the gold explorer were down 4.8% at 1.72 pence on Thursday.
KEFI will issue 57.0 million shares at a price of 1.7 pence per share, through broker Brandon Hill Capital Ltd.
The placing is part of various financial arrangements implemented by the Tulu Kapi consortium for gold project in Ethiopia to start project development at the end of the current quarter.
In late January, local Ethiopian private-sector project partner ANS Mining Share Co increased its investment commitment to subscribe to new shares in the project company Tulu Kapi Gold Mines Share Co to USD38 million from USD30 million on previously announced terms.
In addition, the Federal Government of Ethiopia has started project engineering activities under its commitment to fund USD20 million of offsite-infrastructure.
"KEFI would like to express its appreciation to our Ethiopian project partners, the government of Ethiopia and ANS for their respective commitments of project equity alongside that of KEFI. Not only does this demonstrate their ongoing support for the project, but it also enables certain development works to be expedited, thereby increasing the expected period between first gold production and first debt-repayment," said Managing Director Harry Anagnostaras-Adams.
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