Aim-listed Kefi Minerals has conditionally raised £3-million, equivalent to about $4-million, through a placing of 120-million new ordinary shares at 2.5p apiece to existing and new shareholders.
The placing proceeds net of expenses are expected to be about £2.8-million and will primarily be used to provide the company with the funds to enable the procedural and documentary closing of the $260-million project financing for the company’s Tulu Kapi gold project, which is envisaged to be entirely funded at the project level.
For the project to proceed, all stakeholders now rely on closing out the remaining Ethiopian government processes and approvals, along with the completion of due diligence and formal documentation, Kefi said on Friday.
“We are pleased to secure this funding and the support of our contractors and management. 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,” said Kefi chairperson Harry Anagnostaras-Adams.
Meanwhile, Kefi also intends to issue a further 100-million new shares at 2.5p apiece, with 48-million of the shares to be issued to project contractors and other third parties in settlement of outstanding invoices and debt of about £1.2-million.
Kefi will also issue just over 51.5-million subscription shares for an aggregate value of just over £1.2-million before expenses.