Global investment firm Lanstead has today announced a 4.62 million investment in AIM quoted, gold exploration business, KEFI Minerals (AIM: KEFI) as part of a 5.62 million fund raise as KEFI looks to progress its Tulu Kapi project in western Ethiopia.
KEFI Minerals has gold exploration and development company with projects in the Kingdom of Saudi Arabia and the Federal Democratic Republic of Ethiopia, located in the Arabian – Nubian shield. The main project of focus is the Company’s Tulu Kapi project which was granted a mining licence in 2015.
KEFI will have £693,000 from Lanstead to deploy immediately. The remaining 3.9 million received by KEFI from Lanstead will be invested in a Sharing Agreement, which will enable KEFI to receive those proceeds on a pro-rata monthly basis over 18 months.
The Sharing Agreement is subject to adjustments upwards and downwards each month depending on KEFIâ€™s share price at the time, providing KEFI with the opportunity to benefit from positive future share price performance.
Commenting, Lanstead Director Nicholas Malins-Smith, said: “We have significant experience of investing in mining companies and KEFI Minerals shows strong potential with its exploration projects. We believe the Arabian-Nubian shield presents great opportunities in the gold mining arena and in particular KEFI’s Tulu Kapi project offers an exciting near-term production opportunity.”
Commenting, Executive Chairman of KEFI Minerals, Harry Anagnostaras-Adams, said: “The Directors and our major shareholders welcome Lanstead as a cornerstone shareholder in KEFI. We have continued to advance the Tulu Kapi gold project in Ethiopia and are now at a pivotal stage of the Company’s development. The proceeds of the fundraising will underpin the activities for the whole of 2017 as we look to start development of this quality project during the year.”
Lanstead is a global investment firm that provides funding for ongoing business objectives to listed small and mid-cap growth companies. Lanstead focuses on equity investments in companies already listed on the LSE/AIM, ASX or European exchanges and on management teams with a clear growth strategy.
Since 2007, Lanstead has completed over 40 equity placings with our accompanying sharing agreement to reward growth.
Many of the companies with Lanstead on the shareholder register have benefited substantially from the accompanying sharing agreement, receiving more cash than the original placement proceeds without having to issue any additional shares.
This announcement contains forward-looking statements that are subject to risks and uncertainties. Such statements involve known and unknown risks and important factors that may cause the actual results, performance or achievements of the investments to be materially different from the statements in this announcement.