Gold miner Centamin has upped its stake in Nyota Minerals after agreeing to buy 67m new shares in the AIM-listed gold mining company.
Nyota, a gold exploration and development company focused on East Africa, has raised £9.66m through a placing of 161m new shares at 6p per share.
The purchase of 67m of those newly issued shares takes Centamin's holding up to 90m and gives it a 14.08% stake in the company. Centamin paid £4m for the new batch of shares.
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Centamin views this investment as being in keeping with its stated objective of exploration and development in the highly prospective Arabian-Nubian Shield, a company statement said, while Nyota described the support of an industry peer for its fund-raising as "encouraging".
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"We greatly look forward to Centamin's ongoing support of our efforts in Ethiopia," said Richard Chase, Nyota's Chief Executive Officer.
Nyota said the funds raised will enable the company to plough on with the exploration drilling of its Northern Block exploration properties.
The additional dosh will also enable Nyota to make progress on the Tulu Kapi project after completion of the definitive feasibility study.
Any money left over after that will provide corporate working capital.
"Although the market remains relatively untested for fund raisings in 2012, there are signs that many exploration companies intend to raise finance in the next four months and the board of Nyota felt it essential that we ensure adequate working capital to maintain our focus on our objectives beyond the end of the current financial year," Chase explained.
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