KEFI MINERALS (LSE:KEFI)

1.7500
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Today's high: 1.8000
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Last trade:
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Change:
 0.0250 (1.41%)
Volume:
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Delayed price:
16:30:00
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KEFI riles investors with share placing

Gold and copper exploration company KEFI Minerals (KEFI) has raised £550,000 for its Saudi Arabian mining project through a placing of over 26 million shares.

The shares, placed at a price of 2.1p each, will fund a pre-feasibility study on the Jibal Qutman project in the central southern region of the Arabian Shield.

The study has already begun and KEFI's joint-venture partner Gold & Minerals Company aims to have completed it by the first quarter of 2014. Gold & Minerals will then apply for its first mining licence.

"I am very pleased that, despite the difficult market conditions, we have been able to raise the funding required to allow us to continue to accelerate our pre-feasibility study in line with our planned timetable," said KEFI managing director Jeff Rayner.

"KEFI Minerals is now fully funded for the previously announced work programme and feasibility study at Jibal Qutman."

Investor view

"All those poor small private investors topping up at 3p recently while the company agrees to a 35% discount sale," complained Interactive Investor discussion board user 'The Speculator'.

'Yfed' agreed that the placing was "frustrating" and added: "It is also concerning that the amount raised will not be enough to gear up finance for the Jibal Qutman mine itself (only the pre-feasibility study and drilling programme) so expect another placing/fundraising in six to nine months.

"However, I do not believe they had any option as it is clear that they need to get the mining licence application in as soon as possible in order to create revenue at the earliest date."

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