KEFI Minerals Plc said June 15 that it plans to raise up to £5.5 million, which will be used for various purposes related to the Tulu Kapi gold project in Ethiopia.

The net proceeds from placing 120 million new shares at 2.5 pence each with existing and new shareholders are earmarked for the procedural and documentary closing of the US$260 million project financing.

A further 100 million shares will be placed at the same price to project contractors and other third parties to settle outstanding invoices and debt of £1.2 million and to certain directors and management to settle £1.3 million of fees and salaries.