KEFI Minerals plc (LON:KEFI) is looking to raise a total of £5.5mln through a share placing and subscription which should now entirely fund its Tulu Kapi Gold Project in Ethiopia
The AIM-listed gold exploration and development company said it has conditionally raised £3mln through a placing of 120mln new ordinary shares at a price of 2.5p each to existing and new shareholders.
WATCH: KEFI Minerals to raise a total of £5.5mln through share placing, subscription to fully fund its Tulu Kapi Gold Project
The group said it is also intending a subscription of up to 100mln new ordinary shares at 1.7p each by certain directors and management of the company.
KEFI Minerals said the net placing proceeds are expected to be £2.8mln and will primarily be used to provide the company with the funds to enable the procedural and documentary closing of the US$260mln project financing of its Tulu Kapi Gold Project in Ethiopia.
Harry Adams, chairman of KEFI Minerals, said: "We are pleased to secure this funding and the support of our contractors and management.”
He added: “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.”