African Minerals pulls in funds for Sierra Leone

SHARES in African Minerals rose 1.8 per cent to 410p yesterday after the company, chaired by Frank Timis, said its £80m share placing had been successful.

The group, which is using the proceeds of the issue to invest in an iron ore project in Sierra Leone, revealed that one strategic investor, Dundee Corporation, was taking a smaller stake than anticipated.

Advisers to the group said the reduction in Dundee Corporation’s stake resulted from additional purchasers taking up shares. Dundee is investing £29.9m as opposed to the £33.5m originally proposed.

The statement to the stock exchange also reveals that Dundee Securities, a subsidiary of Dundee Corporation, continues to receive a fee from the company of £1.2m as an underwriter of the share issue.

Murray John, who is chief executive of Dundee Resources Limited, another subsidiary of Dundee Corporation, is a director of African Minerals.

African Minerals is being advised by Canaccord Adams and Mirabaud Securities.