Aim-listed Kefi Gold and Copper has raised £2.97-million through a firm oversubscribed placing, after issuing about 186-million new ordinary shares of 0.1p each at a price of 1.6p apiece.
Both new and existing shareholders partook in the firm placing, with the issued shares expected to start trading on or about November 20.
Conditional on shareholder approval at a general meeting of the company, Kefi has raised a further £278 000 through a subscription for cash by certain existing shareholders, including RAB Capital, which will continue to hold more than 10% of the company's shares.
Additionally, Kefi has advised that certain directors and managers have elected to receive shares in lieu of directors fees and salaries of £491 729, in aggregate, and certain project contractors and third-party creditors have elected to receive shares in settlement of outstanding invoices and debts of £452 028, in aggregate.
Following the issuance of these shares at the placing price, the company will have no material outstanding debts to third-party creditors.
Meanwhile, Kefi will use the proceeds of the placing to fund further resource drilling and exploration at the Hawiah copper/gold project, in Saudi Arabia, as well as to maintain its current 34% participation in Gold & Minerals, which is the joint venture holding the project in Saudi Arabia.
The company will also designate some funds for general working capital, pending funds becoming available from equity subscriptions in Tulu Kapi Gold Mines Share Company, as Kefi looks to finalise a funding consortium for $221-million required to increase its beneficial ownership from 45% to 65% for the Tulu-Kapi gold project, in Ethiopia.