Aim-listed Kefi Minerals has conditionally raised £3.7-million, before expenses, through the placing of 569-million new ordinary shares in the capital of the company to existing and new shareholders.
Investors in the placing include UK investor RAB Capital, which will hold 236-million shares, representing 12.6% of the enlarged ordinary share capital of the company following the placing.
RAB Capital is considered a long-term shareholder and has been granted a right to appoint a director to the board of the company for as long as it holds 10% or more of Kefi's shares.
The placing proceeds, net of expenses, are expected to be about £3.5-million and will provide the company with the funds to enable the closing of the about $260-million in project financing for the company's Tulu Kapi project, in Ethiopia.
This includes the anticipated initial closing of the project level equity in the second quarter of this year, along with that of the identified debt funding in October.
The start of full gold production at Tulu Kapi remains targeted for 2022.