Iron Road raises funds

3rd May 2021 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – ASX-listed Iron Road will raise A$4.25-million through a share placement to institutional and sophisticated investors to advance work on the Cape Hardy port precinct development, maintenance of its Central Eyre iron project mining lease and secondary approvals and costings for a 12-million-tonne-a-year operation.

The company on Monday said that it would place some 19.7-million shares under its existing placement capacity, at a price of 21.5c each, representing a 17.5% discount to Iron Road’s ten-day volume weighted average share price.

A further 2.3-million shares would also be issued to the company’s largest shareholder, Sentient Executive GP IV, subject to shareholder and Foreign Investment Review Board approval, to extinguish Iron Road’s remaining zero interest bearing debt of A$343 000 and other amounts payable to Sentient.

The company is also hoping to raise a further A$2-million through a share purchase plan, which will also be priced at 21.5c a share.