US investment fund Capital International has increased its stake in Bula Resources to just under 15 per cent after a share placing.

Bula has disclosed that it has placed 90 million new shares - 5.3 per cent of its total equity - with Capital at 1.25p sterling (1.34p each) - raising just over £1.2 million. According to Bula, the additional funds will be used to acquire exploration acreage in North Africa and the Middle East.

Mr Pat Mahony, Bula's managing director, said the development showed the company was developing its business after its recent difficulties and had the support of its largest shareholder.