News: Ikwezi Mining raises $2M under right issue, placing underwritten shortfall

Ikwezi Mining (ASX:IKW) has received acceptances for 335,799,632 shares priced at $0.006 under its underwritten rights issue to raise $2,014,798.

The company will now place the shortfall of 341,700,368 shares to the underwriter, Azure Projects.

Proceeds will be used to provide additional working capital for the company together with funding to establish an initial box cut and related infrastructure to allow it to commence the mining of ROM coal.

Ikwezi is focused on the acquisition, exploration and development of coal projects in South Africa.

The most advanced of these is the Ntendeka Colliery project, which involves the mining of an opencast resource progressing to underground coal.

It consists of two coal seams, top and bottom, with the top seam more fully developed and predominantly mineable.

Ntendeka Colliery has a JORC resource of 294MT, of which 50Mt is Measured, 36Mt is at the Indicated level and 208Mt is Inferred.