Dublin, Ireland, 2 Sept – Irish mining company Kenmare Resources said Friday in Dublin it had floated 51.2 million ordinary shares on the market netting 16.4 million pounds sterling to be applied to its heavy minerals unit at Moma, Mozambique.
The new shares account for 6.9 percent of the ordinary shares issued by the company, the Irish company’s chairman, Charles Carvill said in the statement published Friday on the firm’s website.
Carvill said that delays in contracting and a lack of equipment had resulted in lower than expected production levels and revenues at the Nampula mine and that the cash injection from floating the shares would increase production at Moma.
The company, which won the 25-year mining tender at Moma, expects to mine ilmenite, a basic mineral used in manufacturing titanium, as well as zircon and rutilium, used in the naval and aviation industries.
By the end of 2007, the miens, which started operating a year ago, are expected to contribute to 6.5 percent of total world titanium production, the company said. (macauhub)