URA Holdings has completed an accelerated bookbuild to raise £1 million ($1.25 million) to resume operations at the Gravellotte emerald mine, which it owns 74% of in the Limpopo province of South Africa.
The capital was generated through the issuance of 80 million additional shares, each priced at 1.25 pence.
In addition to general working capital, the proceeds will be utilised for the acquisition and installation of the remaining capital items, the majority of which are associated with the processing facility and its commissioning.
It is anticipated that mining and refining operations will resume, leading to the initial production of emeralds during the initial quarter of 2024.
URA chairperson Ed Nealon said despite the unusually difficult market conditions, new investors helped to complete the placement.
"Following the completion of the placement, we can now focus on completing the mine and processing plant refurbishment, commissioning, and restarting of emerald mining and processing at Gravelotte," he said.
Gravelotte was operational from 1929 to 2002 and is historically one of the largest emerald mines in the world.
The company acquired the mine in February of this year.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
