By Julie Crust
LONDON (Reuters) - Titanium Resources Group said investors were less concerned than a few years ago about investing money in Sierra Leone, after the mining firm moved to issue new shares to boost output in the West African country.
The company said on Monday it conditionally placed 151 million shares to raise about $25 million to increase production and processing capacity at its Sierra Rutile mine.
But chief executive John Sisay told Reuters the group's production of rutile -- mainly used to make the titanium dioxide pigment in paints, paper, plastics and pharmaceuticals -- will be lower than anticipated this year.
"In this fundraising there wasn't so much concern about country risks as there was before. It wasn't such a huge deal as it was three-four years ago," Sisay said.
Sierra Leone emerged from a decade of civil war in 2002 and has stepped up efforts to combat corruption.
"I don't think there are any major issues left over from the civil war that threaten stability," said Sisay.
At 1213 GMT, Titanium Resources shares were down 12.2 percent at 10.525 pence, just above the 10 pence at which the company will place the new stock, which represented a 22.5 percent discount to Friday's closing price.
Sisay said new funds accounted for about 65 percent of the placing. Continued...
Monday 16 November 2009
Jean-Raymond Boulle Companies: Titanium Resources says Sierra Leone risk has fallen | Reuters
via af.reuters.com
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