Sierra Leone focused mineral exploration and development company, African Minerals (AIM: AMI), raised £63.8 million by placing approximately 25.5 million shares at 250 pence per share. The size of the placing and the fact that it was completed at a premium to the share price underlines investor renewed appetite for commodity focused businesses.
The placing will be used to complete additional drilling at the Tonkolili Iron Ore Project in Sierra Leone and to fast track the feasibility study for the Tonkolili Iron Ore body, port, rail, and power and infrastructure rail projects.
“The proceeds will allow us to develop the magnetite iron ore resource towards our target of 10 billion tonnes and fast track the Tonkolili Definitive Feasibility Study, to create substantial value for our shareholders. In addition we will undertake engineering work on the infrastructure required to support our iron ore projects,” Frank Timis, Executive Chairman of African Minerals, said. “This is a very large step towards us realising the full potential of our world class iron ore deposit at Tonkolili and the future infrastructure rehabilitation and construction work will in due course provide positive benefits to the local community and the economy of Sierra Leone.”
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