Global commodities investment firm The Sentient Group has taken a significant stake in Africa-focused explorer Aviva Corp, part of a $6 million capital raising to fund ongoing exploration programs.
Sentient took a cornerstone position in Aviva through the 20 cents per share placement, acquiring $3.5 million worth of shares, or 10.5 per cent of the issued capital in the company.
Aviva said it would also offer Sentient a seat on its board.
The remaining shares were taken up by sophisticated and professional clients of Hartleys, which acted as brokers to the placement.
The company will use the funds to follow up encourage drilling results at its Bumbo base metals project in Kenya and continue diamond drilling at its Kakamega gold camp, also in Kenya; and to finalise an environmental impact assessment for the Mmamnstwe coal and power station in Botswana.
Chief executive Linsday Reed said the strong support for the placement was pleasing.
“Our ability to secure a cornerstone investor of the calibre of Sentient is seen by the board as a strong endorsement of the potential of the assets held by Aviva,” Mr Reed said.
“The proceeds received will ensure that Aviva is fully funded for aggressive work programs in West Kenya for 2011-12.”
