Kefi Minerals Plc (LON:KEFI) has raised £3.8m (gross) in equity, via the issue of 761.9m shares yesterday at a price of 0.5p per share. Notably, Odey Asset Management subscribed above its pro rata shareholding to increase its interest in KEFI to 29.5%. Odey is also reported to have offered to underwrite the placing, although this was rendered superfluous by the level of demand from other investors. Ausdrill (a contractor and existing shareholder) subscribed to maintain its shareholding at 7.31%. KEFI’s share price closed at 0.565p on Monday 25 July (the day before the placing was announced), on which basis its theoretical ex-placing price should be 0.552p.
On target for 2017 commissioning
KEFI anticipates executing syndicated financing documentation at the end of Q316, paving the way for construction later in the year, commissioning towards end-FY17 and commercial production in H118 (Edison forecast). KEFI’s latest thinking on funding is that it will fund the US$175m required to bring Tulu Kapi into production with senior secured debt (US$85m), contractors (US$50m), the Ethiopian government (US$20m) and KEFI (US$20m in either mezzanine or equity form). In the aftermath of yesterday’s US$5m raising, this equity/mezzanine tranche reduces to US$15m (which was the assumption in our last note, dated 7 June).
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