The company placed 30 million new ordinary shares, at a price of 50c per share, with institutional and sophisticated investors from Asia, Europe and Australia.

Lead manager for the raising was Helmsec Global Capital.

The bulk of the funds raised, $6 million, has been earmarked for feasibility studies, with a further $2 million allocated on infill drilling and the balance on trial pit and bulk sampling work, an environmental impact assessment and working capital.

Shares in African Energy were up 2.7% or 1.5c in morning trade to 57c.