KEFI Minerals is the operator of two advanced gold development projects within the highly prospective Arabian-Nubian Shield (The Kingdom of Saudi Arabia and the Federal Democratic Republic of Ethiopia). KEFI is targeting production at these projects to generate cash flows for further exploration and expansion as warranted, recoupment of development costs and, when appropriate, dividends to shareholders.
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KEFI Minerals (LON:KEFI), the gold and copper explorer with projects in Saudi Arabia, said it has conditionally raised £1.85 million before expenses through a “significantly over-subscribed” placing.
In all, Fox Davies Capital issued 61,666,667 ordinary shares on behalf of KEFI at 3 pence each.
The broker issued a flash note today, saying it was happy with the raising and that the price only represents a 10 per cent discount to yesterday’s closing price. The money will allow KEFI to continue the exploration programme on its three licences in Saudi Arabia.
“We estimate, that after all placing expenses are taken out, this raising will leave KEFI with about £2 million to play with, which should fund the company for another 12 months and pay for at least 10 000 metres of drilling this year,” FD Capital analyst Juan Alvarez said.
The drilling programme is currently in the planning stages and will combine reverse circulation and diamond drilling.
“The steady news flow, if combined with successful assay results, will act as key catalysts for driving the share price higher,” Alvarez added.
The company announced last month that the Gold & Minerals (G&M) joint venture through which it operates in Saudi Arabia has been granted two exploration licences in the kingdom for five years.
This took the total to three licences, with a further 15 exploration licence applications pending.
The joint venture has started surface exploration over the new licences with the aim of generating targets for drill testing as soon as possible. Limited rock chip sampling, undertaken by G&M during field assessment of the area, returned results of up to 5 grammes per tonne gold from quartz vein zones located within the licences.
The company has projects in Turkey and in Saudi Arabia. It operates the 40 percent held Saudi G&M JV in a strategic alliance with construction and investment group ARTAR.
FD Capital retains its ‘Speculative Buy’ recommendation on KEFI.