Kenmare places 120m shares to fund expansion

20th Jul 2012 08:16

Kenmare, a FTSE 250 miner, has successfully completed the placing of 120m new shares at Stg32p each, representing around five per cent of the ordinary capital of the company. The placing has raised £38.4m before expenses, which will be used, together with cash flow from operations, primarily to ensure that the Phase II Expansion is completed on schedule. Up to $30m of the placing proceeds is expected to be applied to meet the expansion costs.Remaining proceeds will be retained as contingency funding or be used to finance initial payments associated with the procurement of a new upgraded dredge, and to continue to progress the preliminary initiatives relating to the Phase III Expansion.The share price fell 2.55% to 33.95p by 08:30.NR