Timis group to raise 63.8m

David Hellier
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AFRICA Minerals Limited, the exploration group chaired by the colourful Frank Timis, has raised &pound;63.8m after a placing of shares with institutional investors.<br /><br />Africa Minerals says it is placing 25.54m shares at a price of 250p each to help it undertake further drilling at its iron ore project in Sierra Leone.<br /><br />&ldquo;The group has got two good iron ore assets in Sierra Leone but it really needs the money to develop them because right now they are just hunks of deposit,&rdquo; said one follower of the group.<br /><br />Timis, who is backed by a small group of powerful City fund management groups &ndash; which include BlackRock, Capital Research and Prudential &ndash; said: &ldquo;The proceeds will allow us to develop the magnetite iron ore resource towards our target of 10bn tonnes and....to create substantial value for our shareholders.&rdquo;<br /><br />&ldquo;We&rsquo;re delighted the company managed to pull this off,&rdquo; said Mike Jones of Canaccord, the company&rsquo;s adviser.<br /><br />Timis is no stranger to controversy. His Regal Petroleum company enjoyed a 10-fold increase in its share price on exaggerated suggestions it was close to finding a massive oil field off the coast of Greece.