LONDON (ShareCast) - Gold explorers Nyota Minerals and Kefi Minerals have signed a conditional agreement for Nyota to sell its final 25% interest in the Tulu Kapi Gold Project to Kefi for a total of £1.5m.

Under the deal, Nyota will receive £0.75m in cash and 50m new Kefi shares. This will take its stake in Kefi from the current 12% to 14.6%.

Nyota admitted its financing options were insufficient to both fund 25% of Kefi Ethiopia, as contractually required through its share in the project, as well as continue evaluation of its 100%-owned Northern Blocks as well ongoing working capital requirements.

The first cash call, totalling £325,492, had been due on May 2nd. If the cash call is not met, further dilution of its shareholding would follow, Nyota said.

As such, it said it was making the sale to remove any requirement to fund the on-going costs of Tula Kapi.

Simultaneously, Kefi has also conditionally raised £2.125m, not conditional on completion of the acquisition.

Shares in Nyota dropped 3.77% early on, while Kefi was up 1.61%.

NR

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