Chinese firm lifts Kagara stake to 19.9%

Kagara has raised an additional $31 million after China's Guangdong Foreign Trade Group Co elected to increase its interest in the miner to 19.9 per cent.

The Chinese firm had initially held a 15 per cent stake in Kagara after the Foreign Investment Review Board approved a $57 million investment through the placement of share priced at 60 cents each.

FIRB had allowed Guangdong to take up to a 19.9 per cent shareholding.

The introduction of the Chinese investment was part of Kagara's $150 million raising through a rights issue completed in June.

Kagara has previously said it will use the funds to reduce its debt and enhance its future funding flexibility.

The $31 million raising, with shares priced at 80 cents each, is subject to shareholder approval with a meeting scheduled for early September.

Shares in Kagara closed down 3.5 cents at $1.145 today.