African Minerals raises $307m

Date: Thursday 11 Nov 2010

Sierra Leone-focused miner African Minerals has raised $307m (£191m) from a placing at 425p a share to get its huge Tonkolili project into production.

Executive chairman Frank Timis said the fundraising had received a “tremendous response” from a broad range of institutional investors.

“We are now well placed to become a significant independent iron ore producer.”

The company, one of the biggest on AIM, now has the cash to complete the remaining construction of Phase 1 of the project and take the company through to first production, expected in the final quarter of 2011

Phase 1 has been designed around a 10 million tonnes per annum (Mtpa) capacity, but bosses want to get this up to 12 Mtpa by the end of 2012.

A two-year, secured, high yield loan facility of up to $500m is also nearing completion.

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