Namibia-focused exploration firm Kalahari Minerals has conditionally raised £20m through a share placing by Mirabaud Securities and Ambrian Partners to develop a uranium project in the country.

Kalahari is also in advanced discussions to raise an additional £10m, before expenses through the issue of convertible bonds.

The funds will go towards the company’s commitment of raising A$91m equity, announced on 26 August by Extract Resources, for it to maintain its 40% shareholding in Extract.

Extract said that the revenue from the equity raising would help fund exploration work at its Namibia-based Rossing South uranium site.

The revenue will speed up and augment drilling activities for Zones 1 and 2 and extend its regional exploration programme, which will cover recognised mineralisation regions situated south of Zone 2.

Extract said that Zones 1 and 2 already contain a present resource of 267 million pounds of U3O8 at 487ppm and both zones are open at depth and along strike.

Extract’s preliminary cost estimates show that the company can offer support for one of the biggest uranium mines in the world, it said.

Kalahari chairman Mark Hohnen said that the response to the fund raising highlights the potential of the Extract and Rossing South project.

“With this conviction, both the board and our investors continue to believe that it is imperative for us to maintain our circa 40% shareholding in extract, to allow us to benefit from the potential for significant value accretion going forward,” Mohnen said.