Oman’s State General Reserve Fund (SGRF) has signed a deal with Ireland-based Kenmare Resources for a $100 million equity investment in the mining company, a report said.

The deal with the SGRF is part of a new $275-million capital raising by Kenmare, added the Oman Observer report.

The investment will give SGRF up to 29.2 per cent of Kenmare, the report said, citing Financial Times.

Michael Carvill, managing director at Kenmare said: “We are pleased that we have signed an agreement for the investment of $100 million by SGRF and are encouraged by the level of interest shown by a broad range of investors in the capital raise.”

“Early indications of investment from three of the main shareholders of Kenmare, in combination with lender underwriting position the company well to achieve the minimum target of $275 million. With the finalisation of key transaction agreements as announced today, we look forward to further engagement with investors and the completion of the capital restructuring in the next few weeks.

“Production and cost guidance for 2016 remains unchanged and the product market is already showing a long awaited improvement in prices, reversing four years of significant downward pressure. With increased power stability at the mine, a recapitalised balance sheet, a new strategic investor and a higher free float than would have existed with two strategic investors, we believe that the completion of the capital restructuring will leave Kenmare in a strong position in an industry with expectations of a growing supply  deficiency,” he added.