14 December, 2011

Kagara Completes $25M Institutional Share Placement Key Points

• Institutional share placement completed comprising 80,645,161 shares at A$0.31 per share, raising A$25M before costs.

• New North American institutional investor base established supported by strengthened institutional shareholder base throughout Australia, Europe and Asia.

• Proceeds to be used to complete the acquisition of the Einasleigh Copper Project.

• Funds will also enable exploration momentum to be maintained following recent drilling success in the Northern Chillagoe Region.

Kagara Limited (ASX: KZL - "Kagara") is pleased to advise that it has raised A$25 million before costs through an institutional share placement underpinned by a group of leading North American, Australian, European and Asian institutions, including existing shareholders. The proceeds will be used to support Kagara's exploration and production growth strategy in North Queensland.
The share placement, comprising 80,645,161 shares at an issue price of A$0.31 per share, was made to existing shareholders and sophisticated investors under s.708 of the Corporations Act (2001).
The share placement was jointly managed by New York