Photo by: Bloomberg
PERTH (miningweekly.com) – Junior BC Iron has announced a one-for-one pro-rata renounceable entitlement offer aimed at raising A$25.5-million to support its new strategy following the divestment of its 75% interest in the Nullagine iron-ore project, in Western Australia.
Under the offer, eligible shareholders will be invited to subscribe for new shares priced at 13c each.
The offer price represented a 39.5% discount to the closing price of BC Iron shares on October 10, and a 37.2% discount to the 30-day volume-weighted average price of BC Iron shares.
Major shareholder Wroxby has committed to take up its entitlement of some A$4.9-million, and underwriting has been secured for the balance of about A$20.6-million through Patersons Securities and Foster Stockbroking.
Wroxby has also agreed to sub-underwrite A$11-million of the underwritten amount.
The company told shareholders on Thursday that funds raised under the offer would support BC Iron’s new strategy and strengthen the company’s balance sheet.
The funds raised would be used to pursue strategies to develop a robust development case for the overall Buckland mining and infrastructure project, and position Cape Preston East as an attractive port for the West Pilbara region.
Funds would also go towards positioning the company to selectively evaluate and potentially transact on new opportunities in both the iron-ore and non iron-ore spaces, with a strong value proposition and near-term earnings potential.
The junior on Monday announced that it had sold its stake in the Nullagine project to joint venture partner Fortescue for A$1.