KEFI Gold and Copper PLC (AIM:KEFI, OTC:KFFLF) has raised £5 million through a £4.5 million placing and £495,000 through a retail offer both at 0.6p per share.
A further £500,000 worth of shares will be issued to directors and advisers subject to shareholder approval.
KEFI said the money would go towards the completion of project financing and the launch of the Tulu Kapi gold project, specifically legal and professional fees, preparations of the community, site and district security installation and administrative costs of the project funding package.
Shares in the funding round were issued at a discount of around 21% to last night’s closing price.
Harry Adams, KEFI’s executive chairman, added that the funding had been carefully designed to meet the needs of the Tulu Kapi project at the same time as maximising the opportunity for existing shareholders to participate.
"We are now entering a highly active period for KEFI in both Ethiopia [at Tulu Kapi] and Saudi Arabia,” he stated.