MARKET DEVELOPMENT
DekelOil Says Leading Africa Fund Anchors Premium Priced Placing
DekelOil Says Leading Africa Fund Anchors Premium Priced Placing
25/02/2014 (Proactive Investors UK) - Palm oil producer DekelOil (LON:DKL) said it has raised £700,000 via a share placing, anchored by Nubuke, a high profile Africa-focused fund.
The Ivory Coast-focused group sold shares for 1.5p each, a premium to Friday’s closing price of 1.43p.
Nubuke came on board for £600,000.
DekelOil director Lincoln Moore said: "We are delighted to welcome Nubuke to our shareholder register.
“We view this as a strong endorsement of our achievements to date, which have successfully brought us into first CPO production in the Cote d'Ivoire.
“We look forward to moving into our next phase of development with the support of this prestigious African fund."
Last week DekelOil moved a step closer to becoming a major West African palm oil company with the start of commercial production from the crude palm oil (CPO) extraction mill in the Ivory Coast.
The mill is expected to produce 70,000 tonnes a year at full capacity, making it one of West Africa's largest, and will enable DekelOil to take advantage of growing demand for the oil, particularly in China, India, and the Middle East.
Palm oil - used in cooking, cosmetics, and biofuel - is the world’s most widely used edible oil with demand expected to double by 2020.
Dekel, which owns 51% of the vertically integrated palm oil project, received an advanced payment of €610,000 (£501,000) last month under an off-take agreement with local palm oil refiner, Societe Africaine de Raffinerie. The refiner will pay a total of €915,000 for the delivery of 24,000tpa of CPO from the mill.
DekelOil has said it is also in talks with other potential partners.
Production capability from the mill is set to increase this month, to cope with the peak harvesting season in the Ivory Coast which is due to start in March, and to continue to expand in 2015.
The Ivory Coast-focused group sold shares for 1.5p each, a premium to Friday’s closing price of 1.43p.
Nubuke came on board for £600,000.
DekelOil director Lincoln Moore said: "We are delighted to welcome Nubuke to our shareholder register.
“We view this as a strong endorsement of our achievements to date, which have successfully brought us into first CPO production in the Cote d'Ivoire.
“We look forward to moving into our next phase of development with the support of this prestigious African fund."
Last week DekelOil moved a step closer to becoming a major West African palm oil company with the start of commercial production from the crude palm oil (CPO) extraction mill in the Ivory Coast.
The mill is expected to produce 70,000 tonnes a year at full capacity, making it one of West Africa's largest, and will enable DekelOil to take advantage of growing demand for the oil, particularly in China, India, and the Middle East.
Palm oil - used in cooking, cosmetics, and biofuel - is the world’s most widely used edible oil with demand expected to double by 2020.
Dekel, which owns 51% of the vertically integrated palm oil project, received an advanced payment of €610,000 (£501,000) last month under an off-take agreement with local palm oil refiner, Societe Africaine de Raffinerie. The refiner will pay a total of €915,000 for the delivery of 24,000tpa of CPO from the mill.
DekelOil has said it is also in talks with other potential partners.
Production capability from the mill is set to increase this month, to cope with the peak harvesting season in the Ivory Coast which is due to start in March, and to continue to expand in 2015.