Dublin, Ireland, 8 Mar - The Irish company Kenmare Resources has announced plans to issue 1.497 million shares to raise 179.6 million pounds for expansion of its titanium mine in Moma, Mozambique.

Kenmare's report on the planned expansion was completed in January and put forward options to increase the mind's production by about 50 percent to 1.2 million tonnes per year of ilmenite and associated products. 

Increased demand, with rates above the historic average, associated to insufficient supply, may lead to a shortfall in supply of titanium ores in 2012, said Kenmare's president, Michael Carvill, in the note released by the company on Friday.

"Expansion of the Moma mine should be finished in 2012 and will enable Kenmare to benefit from the favourable conditions. The company is already producing high quality ilmenite, and should also produce significant amounts of valuable by-products," Carvill stated.

The company will use 133.1 million pounds from the funds obtained via the share placement to cover engineering, equipment acquisition and construction costs associated to expansion of the Moma project.

Kenmare Resources recorded a loss of US$30.4 million in the financial year which ended on 31 December 2009.