Richland Resources seeks to re-boot tanzanite operations in Tanzania following a £4million ($6.5 million) fund-raising launch.
The company said the minimum proceeds were £2.0 million ($3.2 million) pursuant to the placing and the shares committed by directors and existing shareholders under the open offer.
It said additional proceeds, in excess of the minimum, would be applied towards an accelerated capital expenditure programme at the mine site and its diversification programme, including the development of the Tsavorite project and the potential option exercise over the sapphire project
The rare-gemstone miner had been making losses due to illegal miners that occupied part of its site, hampering access to higher grades and some equipment in the process.
However, a licence sharing agreement with the Tanzanian state-owned STAMICO and the help of law enforcement officers restored order in the licence area.
"Our intention is to rapidly establish new production and return to profitability, a situation fully supported by our licence partners, STAMICO," said Richland chief executive Bernard Olivier.
Richland made a consolidated loss of $13mln in 2012 and $0.56mln in the six months to June 2013.
It produced 810,347 carats from the processing of 7,182 tonnes of material at an average grade of 108 carats per tonne during the same period.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished