News blog

Kefi Minerals

  • BY: Andrew Hore |
  • POSTED: 26/11/2014 |

Kefi Minerals has launched a three-stage fundraising of £4.9m to finance the development of its Tulu Kapi gold project in Ethiopia.

The first placing will raise £800,000 and the second £1.1m – both at 1p a share. These shares are going to existing shareholders and some directors and will be issued this year. The remaining £3m will be raised at between 1.3p a share - 2p a share from a new cornerstone investor Perth Global Funds and be issued in February. The final price will be based on the volume weighted average share price over the 20 days before the shares are issued but it will be between 1.3p and 2p.

The current share price fell 0.08p to 1.15p. The additional cash will take the project to the point of a full development commitment.

Kefi acquired 75% of Tulu Kapi for £6m, equivalent to less than $10/ounce of JORC reserves, which are more than 1 million ounces. The latest development plan has reduced the cost of capital expenditure to $130m and operating costs are estimated at $626/ounce.

Kefi still hopes to obtain its mining licence in early 2015 and mid-2015 is the target for arranging project finance. This could lead to the commissioning of the mine before the end of 2016.

Download the latest AIM Journal from http://www.hubinvest.com/ AIMPDFNovember2014_62

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