PERTH (miningweekly.com) – ASX-listed Magnetite Mines will raise A$7-million in a share placement to sophisticated and institutional investors to advance studies at the Razorback iron-ore project, in South Australia.
The company would issue more than 120.8-million shares, at a price of 5.8c each under its existing placement capacity.
The share price represented a 2% premium to Magnetite’s five-day volume weighted average share price.
“We believe that this placement, which is modest in proportion to the company’s market capitalization, has considerable longer-term benefits for shareholders. It brings sophisticated and institutional investors on to our register, which is a positive development as we move the Razorback iron-ore project forward, it underpins the financial position of the business, and it increases the funds available for the company’s exciting development programme,” said executive chairperson Peter Schubert on Friday.