British company Baobab Resources, which has mining projects in Mozambique, recently issued 50 million shares at a unit price of 8 pence, thus raising 4 million pounds before expenses, the company said in a statement.

In the recently issued statement the company said it had reached a share subscription agreement with Redbird Investments Ltd., an investment vehicle 100 percent owned by African Minerals Exploration & Development SICAR SCA.

Under the terms of the deal, Redbird Investments Ltd. subscribed all 50 million shares and received 25 million warrants for ordinary shares that may be exercised at a price of 12 pence per share by 6 July, 2013, thus raising its total investment to 7 million pounds.

The funds raised, if Redbird Investments Ltd. exercises its warrants will be used to finish the economic pre-feasibility study for Baobab’s project in Mozambique’s Tete province, and to fund the company’s business activities.

African Minerals Exploration & Development SICAR SCA is a fund that was recently set up in Luxembourg and which is investing in mining projects, mostly in Africa. (macauhub)