Keaton raises R65m with share issue

[] — KEATON Energy has raised R65m by issuing new shares for cash, intended mainly to pursue opportunities presented by the recent acquisition of Leeuw Mining.

In total, almost 14.5 million ordinary shares were issued at 450c each – a premium to Keaton’s current trading price of 395c. This represents 10% of the issued share capital of the group

The shares were placed with Plusbay Ltd, an affiliate of Gunvor, which became a new anchor shareholder with the acquisition of Leeuw.

“The proceeds of the cash issue will be utilised for the pursuit of new business opportunities, in particular the opportunities presented by the recently announced transaction to refinance and acquire a 74% interest in Leeuw Mining and Exploration,’ read a statement issued by the company.

The deal with Leeuw was also struck on 450c/share.