Kenmare share placing nets $270m
KENMARE Resources, an Irish company which mines titanium ore in Mozambique, has successfully raised $270m in a share placing and open offer to pay for an expansion of the company's mine. Shares rose 3.2pc to 16c following the news.
The company will issue 1,497,030,066 new shares at an issue price of 12p per share and trading will begin on Thursday. The company said yesterday about 73.5pc of shareholders had subscribed to the offer by Friday's deadline. The remaining 26.5pc was placed with investors. Shareholders voted in favour of the placing yesterday.
The money will be used to fund the expansion in the company's mine which produces titanium which is used for pigment for paper, paint, plastics as well as in jewellery, medical prostheses and lightweight alloys.
Kenmare hopes its mine will supply 10pc of global demand for titanium dioxide and 6pc of the world's zircon supply when the mine expands.
A global shortage of titanium feedstock is estimated for 2012 due to increased demand from developing countries, particularly China and declining production in established mines. The Mozambique mine has reserves estimated to last 125 years at current drilling levels.