Iron RoadLtd. said July 26 that it has raised gross proceeds of A$4.8million after closing a 1-for-9 nonrenounceable entitlement offer of newshares, exceeding its minimum expectations of A$4.4 million.
The company has also settled a A$3.8 million institutionalplacement with Sentient Global Resources Fund IV LP, after securing shareholderapproval on July 25.
The entitlement offer and Sentient placement were part ofseveral capital raisings first announced in June, which aimed to raise at leastA$9.2 million but could potentially raise up to A$11.3 million. These capitalraisings included a A$1.1 million institutional placement of new shares.
Iron Road now expects to secure gross proceeds of A$9.6million from the capital raisings.
Proceeds will fund environmental and engineering studiesrequired to obtain governmental approvals for the iron project, orCEIP, in South Australia, iron ore marketing and related activities to finalizeoff-take arrangements and to support due diligence work with other potentialproject equity partners. Proceeds will also be directed toward continuedstakeholder engagement activities, fully repaying the A$4 million debt facilitywith Sentient Global Resources and for general corporate purposes through June2017.
Iron Road added that finalizing the placements has concludedthe financing process designed to make a final investment decision on the US$4billion CEIP, in which the company has a cooperation agreement with a unit of andShandong Iron & Steel GroupCo. Ltd.