Odey Asset Management continues to put its considerable weight behind Ethiopia and Saudi-focused gold group Kefi Minerals (LON:KEFI).
The huge hedge fund has a 29.5% stake and is fully supporting a new £3.8mln placing by the gold mine developer.
Indeed, it offered to underwrite the whole issue but Kefi said that due to the commitments from other shareholders it declined Odey’s offer aaddig it did not need any underwriting.
Ausdrill International, the engineering contractor for the Tulu Kapi mine in Ethiopia, also took shares to match its 7.1% stake.
The placing was priced at 0.5p, a discount of around 10% to the market price yesterday.
Kefi said it would use approximately £2.2mln at Tulu Kapi, primarily for the resettlement of the local community and project finance closure costs.
In addition, exploration field work is budgeted to re-commence on the satellite deposits within trucking distance of Tulu Kapi in Ethiopia and in Saudi Arabia.
Harry Adams, Kefi’s executive chairman, said the funds would maintain momentum as it moves towards steady-state targeted production in 2018 of over 100,000oz pa from the Tulu Kapi open pit and then underground.
“This, together with the potential Jibal Qutman open pit heap-leach mine in Saudi Arabia, should lift gold production to over 150,000 oz pa with All-in Sustaining Costs targeted to be c. US$750/oz.”