Business
Placing to raise approximately £3m
Placing to raise approximately £3m.
About this update from Kefi Gold And Copper Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 3506F\n Kefi Gold and Copper PLC\n 16 November 2020\n \n \n \n \n \n \n \n 16 November 2020\n \n KEFI Gold and Copper plc\n (\"KEFI\" or the \"Company\")\n \n Oversubscribed Firm Placing to raise approximately £3 million\n Conditional Subscription for cash, settlement of debt and accrued fees\n KEFI (AIM: KEFI), the gold exploration and development company with projects in the Federal Democratic Republic of Ethiopia and the Kingdom of Saudi Arabia, is pleased to announce a firm oversubscribed placing to raise gross proceeds of £2,976,000 (the \"Firm Placing\"), through the issue of 186,000,000 new KEFI ordinary shares of 0.1p each (\"Placing Shares\") at a price of 1.60 pence per share (the \"Placing Price\") with both existing and new shareholders.\n The Firm Placing was arranged by Brandon Hill Capital Limited (the \"Broker\"), as agent of the Company pursuant to the terms of a Placing Agreement. The Company intends to seek admission to trading on AIM for the Firm Placing Shares on or around 20 November 2020.\n Conditional on shareholder approval at a General Meeting of the Company, the date of which is to be confirmed, the Company has raised a further £278,000 through a subscription for cash by certain existing shareholders including RAB Capital who will continue to hold more than 10% of the Company. Also, certain directors and managers of the Company have elected to receive shares in lieu of directors fees and salaries of £491,729, in aggregate, and certain project contractors and third party creditors have elected to receive shares in settlement of outstanding invoices and debts of £452,028, in aggregate. Following the issuance of these shares at the Placing Price, the Company will have no material outstanding debts to third party creditors.\n Use of Placing proceeds\n The Placing is being undertaken to:\n \n · Fund a further resource drilling and exploration at the Company's Hawiah copper-gold project, which continues to gather momentum following encouraging drilling results in the recent drill programme and to maintain its current 34% participation in Gold & Minerals Limited (\"G&M\"), the Company's joint venture in Saudi Arabia; and\n \n \n · for the provision of general working capital for the Company pending funds becoming available from project equity subs...