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KEFI Minerals raises £515,000 in equity placing

Gold and copper explorer KEFI Minerals PLC (AIM:  KEFI) said it has successfully placed 32,187,500 shares at a price of 1.6 pence each, raising approximately £515,000 before expenses to use as additional capital to fund on-going strategic initiatives and further exploratory work on its highly prospective exploration areas in Turkey and Saudi Arabia.

Earlier this week, KEFI Minerals said it has started a drilling programmes at the Bakir Tepe project in southwest Turkey with the aim of testing a large geophysical anomaly that is interpreted to potentially be related to a Cyprus-style copper-gold volcanic-hosted massive sulphide (VHMS) deposit.

The company is operating Bakir Tepe as a joint venture with Centerra Gold Inc (TSX: CG). Centerra has the right to earn a 51 percent interest in the project upon contributing US$750,000 to the JV over two years with a minimum expenditure of US$350,000 in the first year. KEFI Minerals is the manager of the joint venture.

Also in a JV with Centerra, KEFI Minerals is currently conducting a drilling programme at the Artvin gold project in northeastern Turkey targeting a very large geophysical gold and base metals anomaly identified on surface. Centerra is funding exploration there in order to earn up to 70 percent of Artvin upon expenditure of US$6 million.

KEFI’s projects include seven in Turkey, targeting +1 million gold-ounce equivalent deposits. The company recently engaged in exploration activities in Saudi Arabia, where it established the Gemco Ltd joint venture (KEFI: 40 percent) with local construction and investment group ARTAR, targeting a 1 million oz gold deposit in the Precambrian Shield. KEFI and ARTAR have already lodged ten exploration licenses with the Saudi Arabian authorities.

Disclosure: The author does not hold a position in the company