LONDON Oct 10 Irish-based miner Kenmare
Resources said it would sell new shares to raise
66.33 million pounds ($105.82 million) in short term liquidity
after weak pricing for minerals and lower production caused a
Kenmare, which mines ilmenite and zircon from its Moma mine
in Mozambique, said on Thursday it would place 250.3 million new
ordinary shares, representing 9.89 percent of its existing share
capital, at a price of 26.5 pence per share.
The placing is being conducted through an accelerated book
build process which would be launched immediately, and is fully
underwritten by RBC Europe and J&E Davy, it said.
Kenmare said it decided it needed a capital injection
following a 40 percent fall in shipments over the July 10-Oct. 1
period, which had been hit by lower-than-expected sales to
China, and a weak pricing outlook.
It said it intended to use the cash raised to pay near-term
obligations of about $20 million that were related to the
expansion of its Moma mine, and to apply against a $40 million
loan with Absa Bank that it was also hoping to extend.
Shares in Kenmare closed at 29.09 pence on Thursday, valuing
it at 667.45 million pounds.