Adelaide, Sept 28, 2006 (ABN Newswire) - FerrAus Limited (ASX: FRS) is pleased to announce a share placement of 6,275,000 fully paid ordinary shares at 41.5 cents per share to raise A$2,604,125 before expenses.
The placement has been made to a select group of Australian and international professional investors including two U.S.-based financial institutions and clients of Bell Potter Securities.
The placement closed with strong interest beyond the Company's capacity to accept applications.
"Although not unexpected, we are nonetheless delighted with the strong response to this placement - particularly from offshore", said Managing Director, David Turvey. "It emphasises the strong potential value that international investors see in our projects and exploration portfolio and highlights the confidence and credibility in our development plans moving forward."
The funds raised will be applied to resource evaluation and mine development planning at the Robertson Range iron ore project, exploration on the Davidson Creek iron ore project, regional exploration of the Enachedong manganese project and working capital.
In accordance with Listing Rule 3.10.3, the Company provides the following details of the placement shares:-
Class of Securities : Fully paid ordinary shares.
Number to be Issued : 6,275,000
Principal Terms
of Securities : The shares will carry standard
rights applicable to quoted ordinary
shares in the Company and will, from
the date of issue, rank equally with
fully paid quoted ordinary shares
currently on issue.
Issue Price : 41.5 cents per share.
Purpose of Issue : Funds raised will be used for
exploration, resource evaluation,
mine development planning and
working capital.
Shareholder Approval : The Company will not seek shareholder
approval prior to the issue of the
6,275,000 placement shares, as approval
for this issue is not required by the
Listing Rules.
The Company intends to subsequently seek approval of this issue at a general meeting pursuant to Listing Rule 7.4 (subsequent approval of issue of securities).
Issue to Class : The issue is not being made to a class of security holders.
As the issue is to sophisticated or professional investors, it will not require disclosure under the Corporations Act.
