A Chinese entity will take a major stake in Kagara after the miner raised more than $150 million from institutions and retailers.
Kagara announced today that it had raised more than $40 million from the retail entitlement offer, short of the targeted $86 million it set itself.
However the retail offer was partly underwritten to $37 million by Macquarie Capital Advisers and Southern Cross Equities.
The retail offer follows an entitlement offer to institutions which raised $91 million.
Kagara said that the offers, combined with an earlier private placement of $23 million, have raised just over $150 million for the company.
The miner will net a further $60 million from Guandong Foreign Trade Group Co, which will now subscribe for Kagara shares priced at 60 cents each.
On completion of the placement and offers, Guandong will hold a 15 per cent interest in Kagara and will have an option to increase it to 19.9 per cent.
Guandong has received all necessary Chinese regulatory approvals but still need approval from the Foreign Investment Review Board.
When Kagara unveiled its capital raising plans last month, it had anticipated to raise up to $262 million.
Kagara will use the funds to pay Western Areas an initial $20 million for work on its Lounge Lizard nickel project and to repay bank loans.
Shares in Kagara shed 1.5 cents to 69c at 11:51 AEST.
