JOHANNESBURG (miningweekly.com) – Aim-listed gold hopeful Kefi Minerals has raised about £3.8-million to resettle the Tulu Kapi community in its vital next development step at the Tulu Kapi gold project, in Ethiopia.

The £3.56-million net proceeds, combined with the company’s current £2.2-million working capital, will resettle the community, fund the project finance syndication closure costs and allow for exploration fieldwork to recommence on the satellite deposits, within trucking distance of Tulu Kapi.

Further funds will also be allocated to Kefi’s projects in Saudi Arabia.

“This, together with the potential Jibal Qutman openpit heap-leach mine in Saudi Arabia, should lift gold production to over 150 000 oz a year with all-in sustaining costs targeted to be about $750/oz,” said Kefi executive chairperson Harry Anagnostaras-Adams.

This will maintain the company’s momentum towards targeted steady-state production in 2018 of over 100 000 oz a year from the Tulu Kapi openpit, with additional production starting from the Tulu Kapi underground as soon as possible thereafter, he added.

“We are pleased to receive the support of our existing shareholders, as well as additional new subscribers in this placing, who share our belief that Kefi remains a highly attractive investment opportunity, particularly in the current global environment and in light of the strengthening gold price,” said Anagnostaras-Adams.

The gold exploration and development firm conditionally raised the funds through the issue of nearly 762-million new ordinary 0.1p shares at a price of 0.5p apiece, by way of placing 708-million shares through Brandon Hill Capital. Further, 7.31% shareholder Ausdrill International undertook a direct £266 160 subscription of  53-million placing shares to maintain its pro rata shareholding.

Odey Asset Management, which subscribed to 334-million placing shares, increased its shareholding in Kefi to 29.5%, and indicated its willingness, in principle, to underwrite the placing.

Kefi directors Ian Plimer and John Leach have also each agreed to subscribe to placing shares.