Mozambi said it intends to use the funds to further work at its existing exploration licences in Mozambique’s Zambeze coal basin and to pursue additional acquisitions in the region.
The Zambeze basin is an emerging and highly prospective coal region within economic reach of the East African coast. Globally significant resource companies including Rio Tinto, Vale, Jindal Steel and ENRC have undertaken coal exploration and development projects within the area.
Mozambi managing director Shiv Madan said the company was pleased to have attracted another credible institutional investor.
“The KAR Group is a highly regarded organization and we are confident that an ongoing relationship with KAR will benefit all shareholders as it enables the company to tap into a new investor base in the Middle East,” he said.
“The boost to cash reserves ensures we are well funded to complete our objectives of exploration at Songo and Muturara and allows us greater flexibility in the search for new assets in the region.”
Mozambi is planning a 3000m drilling program at the 224sq.km Songo tenement which lies 115km west of the city of Tete. The company says a 700 million tonne reserve has already been identified at the site.
Muturara, only 58km southeast of Tete is expected to undergo 3000-5000m of drilling and is targeted for up to 3.6 billion tonnes of coal.