London-listed URA Holdings has raised £1-million in an accelerated bookbuild to restart operations at its 74%-owned Gravellotte emerald mine, in South Africa's Limpopo province.
The funds were raised through the placing of 80-million new shares at a price of 1.25p each.
"We would like to welcome all our new investors, including the new institutional investors, as well as thank everybody for their support in completing this placement despite the unusually challenging market environment.
"Following the completion of the placement we can now focus on completing the mine and processing plant refurbishment and commissioning and restarting of emerald mining and processing at Gravelotte," says URA chairperson Ed Nealon.
The proceeds will be used for the purchase and installation of the remaining capital items, primarily relating to the processing plant and commissioning of the processing plant, as well as general working capital.
The restart of mining and processing operations and first emerald production is expected to occur in the first quarter of 2024.
URA, which is headed up by CEO Dr Bernard Olivier, points out that Gravelotte is historically one of the largest emerald mines in the world and was operational from 1929 to 2002.
The company acquired the mine in February this year.