Kenmare meeting approves funding proposal

The shareholders of exploration firm Kenmare Resources have voted in favour of a move that will help the mining company raise more funds to increase annual production levels at its mine in Mozambique.

At an extraordinary general meeting in Dublin yesterday, shareholders approved a proposal to reduce the subscription price for warrants exercised between yesterday afternoon and December 21st.

The proceeds raised from the early exercise of the warrants will be used to improve the production process at the Moma mine, which is Kenmare's main asset, as well as general corporate purposes.

The company has not said how much it hopes to raise.

Kenmare wants to expand the mine so that it produces 1.2 million tonnes per annum of ilmenite, the main ore of titanium. Under the plant's current design, it can produce 800,000 tonnes of this mineral a year.

A barge for transferring ilmenite products from the Moma site to the sea for shipment arrived at the mine earlier this month.

A spokesman for Kenmare said the company expects to complete its first sale with customers in the next few weeks.

Prices for ilmenite are rising and almost all of Kenmare's present output has been allocated. In September, the company established a standby loan facility of $22 million (€15 million) for its operations, due to a delay in revenues from the Moma site. As of yesterday, it had not drawn from this line of credit.