Kagara sells stake for $10m

Miner Kagara has sold an 11.5 per cent stake of the company to offtake partner Transmarine for $10 million as it embarks on a share purchase plan to raise a further $26 million.

In a statement this morning, the miner said Transamine has subscribed to 25 million shares at 40 cents each, with funds raised to progress Kagara's portfolio of projects and for working capital.

The placement falls within the company's 15 per cent placement capacity therefore shareholders are not required to approve the placement.

Additionally, Kagara today launched a share purchase plan to raise up to an additional $25.9 million.

The company said the maximum number of shares to be issued will not exceed 30 per cent, and each share will be sold for 40c apiece.

Kagara currently has 216.39 million shares on issue.

Shares in the miner dipped 2.5c to 39.5c at 10:54 AEDT.