KEFI MineralsPlc has raised gross proceeds of about £3.8 million to continuedevelopment at its TuluKapi gold project in Ethiopia, it said July 26.

The company will use the £3.6 million net proceeds, and its£2.2 million existing working capital, to resettle the Tulu Kapi community andcover the project finance syndication closure costs.

In addition, exploration field work is budgeted to restarton the satellite deposits located within trucking distance of Tulu Kapi and atthe company's projects in Saudi Arabia.

Following the placement, Odey Asset Management LLP will havea beneficial interest in about 29.5% of KEFI's issued share capital.

Ausdrill International Pty. Ltd., which owns 7.31% of KEFI,also participated in the placing to keep its pro rata shareholding in thecompany.

Previously in July, KEFI announced a of its board as ittransitions toward gold production at Tulu Kapi.