A Canadian listed firm Stockport Exploration has raised Sh44.7 million from Kenyans to finance gold and iron mining exploration operations in western Kenya.
Stockport exploration activities are based along Migori and Sotick districts along a gold-hosting greenstone belt in southwest Kenya which extends to Tanzania where large scale gold mining has been going on for years.
Local investors snapped up 5,197,160 shares at a price of $0.10 per share for aggregate gross proceeds of $519,716.
The deal was conducted through a non-brokered private placement initially targeting $500,000, marketed exclusively in Kenya.
"Adding Kenyan investors to our shareholder base is a significant step," said Jim Megann, Stockport Exploration President. "We are very much committed to working in Kenya for the foreseeable future,"
Net proceeds of the Private Placement will be used for exploration of the company's Kenyan property package and working capital.
During 2011, Stockport also received preliminary approval for the Sotik License covering 658 km2. Sotik is located approximately 40 kilometres east of the Company's Nyanza Project and separate from B&M-EAPG joint venture.
Stockport's exploration program initially focuses on gold in the Awuoro, Kanga and Kwoyo areas in Western Kenya. According to Stockport Kenya's tremendous exploration potential is demonstrated by both the industry success in neighbouring Tanzania and the extensive history of artisanal gold mining dating back to the colonial.
"Despite this acknowledged potential, Kenya has experienced limited modern exploration of the potentially for multiple large-scale deposits within this prospective mineral environment," the firm said in its website.
Stockport's licenses cover dozens of known historic and artisanal gold workings, iron formations along a prolific gold hosting greenstone belt within Kenya.
The company plans to evaluate the iron deposits as part of its overall exploration strategy.
The Canadian listed company has other exploration areas, but Kenya is now its prime investment priority.
Stockport appointed Zephaniah Mbugua as a Director in the exploration company effective February 18, 2013. Mbugua is a the chairman of TransCentury, a founder and currently the CEO of Abcon Group of Companies involved in chemicals and the manufacturing of breakfast cereals.
He is also the Chairman of East African Cables and a director of Proctor & Allan EA Ltd, Flashcom Ltd. and Zeniki Investment Ltd.