Edited Press Release
LONDON (Dow Jones)--Kalahari Minerals said Thursday that it has conditionally raised GBP14.4 million (before expenses) by way of a placing of 46,080,000 new Ordinary Shares at a price of 31.25 pence per new Ordinary Share.
The net proceeds of the Placing will be used to develop the Company's current copper and base metal projects, provide it with the capacity, to the extent that it is able, to maintain its stake in Extract Resources and for general working capital requirements.
The company said it has attracted new institutional shareholders to its investor base.
It is intended that the proceeds will be used, if possible, to maintain Kalahari's shareholding in Extract, in order to support Extract's progress in developing its prospective Husab uranium project and potentially undertake feasibility work on developing two mining projects. The proceeds will also be used to develop Kalahari's existing copper prospects including re-defining historic resource estimates at the Witvlei project area into a JORC-compliant resource.
The company will also use the money to undertake a development programme and fund a pre-feasibility study at the Namib Lead Zinc project with a view to recommencement of production and to satisfy the Company's working capital requirements.
Kalahari Minerals said it has healthy cash resources of approximately GBP16 million following the Placing. The Company said it proposes to raise GBP13.6 million net of expenses. Extract's recent results have been very encouraging for Kalahari. The value of Kalahari's shareholding in Extract will be driven by Extract's results and share price performance; however. The Directors believe that as a result of the positive news released so far, the future prospects for Extract are promising.
Exploration and drilling at the Company's copper projects continues and its prospects will be determined by the success of re-defining significant, historic estimates at Witvlei into a JORC-compliant resource. Similarly with the Namib lead-zinc project, its future prospects will depend on the success of further exploration to determine the extent of mineralisation, the identity of any potential extensions and confirmation on the projects viability as an operating mine.
(END) Dow Jones Newswires
March 20, 2008 03:39 ET (07:39 GMT)
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DJ Kalahari Minerals: Raises GBP14.4M Through Placing >KAH.LN
Kalahari Minerals
Dow Jones
20 March 2008
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