African Minerals Limited said that it raised USD 105.3 million by selling shares to institutional investors, partly to fund further drilling activities at its Tonkolili iron ore project in Sierra Leone. The company said it sold 25.5 million shares at 250 pence apiece, which represents a premium of 4% to the stock's closing price of 240.25 pence.

Mr Frank Timis executive chairman of African Minerals said that "The proceeds will allow us to develop the magnetite iron ore resource towards our target of 10 billion tonnes and fast track the Tonkolili definitive feasibility study."

African Minerals also said that it would use the placing proceeds to undertake engineering work on the infrastructure required to support its iron ore projects.

(Sourced from www.reuters.com)