Kenmare Resources' open offer part of £180m fundraising gets 73.5% take-up

Kenmare Resources (LSE: KMR) the open offer of its £179.6m placing and open offer fundraising announced earlier this month for its Moma titanium minerals mine in Mozambique received a take-up of 73.5% from qualifying shareholders.
The remaining shares representing 26.5% of the open offer have been allocated to the investors with whom they have been conditionally placed.
Kenmare expects to complete the expansion of the Moma mine in 2012 with full production at the expanded design capacity expected late that year to capitalize on the expected market supply deficit. The planned expansion provides for a 50% increase in design capacity, taking ilmenite production to 1.2m tonnes per annum.
The project has an estimated cost of US$200m, including a US$18m contingency. The project is based on an expansion study, which was completed in January 2010. Of the placing proceeds, £133.1m (US$200m) is intended to fund the engineering, procurement and construction costs of the expansion project.
In January 2009, the company revealed that heavy mineral concentrate production at Moma had reached full design levels, after achieving a 22% quarter-on-quarter increase in production in Q4 2009.
The remaining proceeds of some £37.7 million will be used to cover any increase in costs of the expansion and general capital purposes including debt service payments which cannot be met from operating cash flows.
During 2009, Kenmare produced 826,200 tonnes of heavy metal concentrate, 494,400 tonnes of finished product as a result of processing and achieved 418,000 in export sales tonnes. The company reported a net loss of US$30.35m for the year on revenues of US$26.7m. The group had no revenues in 2008.
Shares in Kenmare rose 3.5% on today's news.

http://www.proactiveinvestors.com.au/companies/news/6055/kenmare-resources-open-offer-part-of-180m-fundraising-gets-735-take-up-6055.html