Irish mining company Kenmare Resources is to raise $97m through a placing of $55m and an open offer of up to $42m as part of the funding for its massive Moma titanium mineral sands project in Mozambique.
Kenmare says the completion of the funding will be the last major step in the financing of the project.
The total capital funding requirement of project implementation is $348 and today in Dublin the company signed agreements on loans of $269m for the project.
The lenders are the African Development Bank, ABSA, a South African commercial bank, the European Investment Bank, FMO, a Dutch development finance
institution, and KfW Bankengrûppe, a German development finance institution.
Mozambique's Minister of Mineral Resources and Energy was in attendance.
Mr. Charles Carvill, Kenmare chairman said that he expected that the mine will be operational during the second half of 2006."
The share placing involved 187.5 million new shares at 16p sterling per share, placed mainly with Irish and UK institutional investors. The open offer to existing shareholders is on the basis of 13 new shares for every 27 held.
Kenmare closed down 2c to 0.26 this evening on the ISEQ.
