Kenmare Resources has reported an operating loss of €1.12 million for 2001, up from a loss of €973,004 for the previous year.

Chairman Mr Charles Carvill said the loss arose largely from the provision for the falling value of its Niassa gold mineral interest.

"As outlined in the 2001 interim report, this was due to the low gold price and the decision to focus company resources on the Moma project," said Mr Carvill.

The focus of the company's activities in the coming year would be on financing and development of the Moma titanium minerals project in Mozambique and on marketing the minerals produced at Moma, he said.

Kenmare signed implementation and mineral licence agreements for the project with the Mozambique government in January. That paved the way for the financing of the project and Mr Carvill said the company had approached a number of development finance institutions and commercial banks.

"The responses to these contacts were positive and we have so far received expressions of interest to provide loans totalling $130 million [€148 million]," he said.

"These expressions have been provided by a group of development finance institutions, which will shortly begin their due diligence processes and commence detailed negotiations.

"Kenmare is awaiting responses from a number of similar institutions, which are expected to join these processes."

Kenmare's raising of €13 million in a placing of 56.95 million shares priced at 23 cents each earlier this week was a strong endorsement of its strategy for the Moma project, Mr Carvill said.

In addition, the company proposes raising €5.4 million through an open offer of 23.88 million new shares to existing shareholders.