JOHANNESBURG (miningweekly.com) – Irish mining company Kenmare Resources has entered into arrangements with its brokers, Canaccord Adams, Davy, and Mirabaud Securities, to raise £10,3-million.

Kenmare would place 54-million new ordinary shares at a price of €0,06 each, the company said on Tuesday.

The funds raised would ensure that Kenmare retained sufficient liquidity to meet its obligations, and to provide further financial resources to acceleration production expansion plans at its Moma titanium minerals mine, in Mozambique.

The share placement represented 6,6% of Kenmare's issued ordinary share capital as at the end of June, and when issued, would rank pari passu in all respects with the existing ordinary shares in the company.

Settlement of the share placement would take place on August 5.

In addition, the board of Kenmare has decided to extend the exercise period on outstanding warrants, which would otherwise expire on July 23 until December 31. There are a total of about 28,5-million warrants outstanding with an exercise price of 19p.

The $450-million Moma mine will produce 800 000 t of ilmenite, 21 000 t of rutile and 56 000 t of zircon when it reaches full production.

Kenmare said in mid-June that its performance improvement project, aimed at increasing production by removing limitations in the plant and equipment of the mine, would be fully completed between July and August.

In May, Moma produced 40 000 t of ilmenite and 2 300 t of zircon.

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