Iron Road Limited (ASX:IRD) Raises A$21M to Advance Central Eyre Iron Project Beyond Prefeasibility Study
- Issue strongly supported by clients of Southern Cross Equities alongside both new and existing global institutional investors.
- Global institutional investors, including Iron Road's largest shareholder The Sentient Group and two US university endowment funds of Columbia University and Duke University, maintain their support.
- Central Eyre Iron Project PFS identified that project NPV can be lifted from $1.1 billion to over $2.4 billion with an increase in mineral resources from further drilling - funds in part will be used to advance this objective.
- Funds raised via issue of 24.0 million shares at an issue price of $0.90, subject to shareholder approval.
Iron Road Managing Director, Mr Andrew Stocks, said that the funds raised would enable the company to continue on the road to production.
"Our positive prefeasibility study for the Central Eyre Iron Project demonstrated that not only was there significant current value for shareholders, but that considerable value may be added by increasing resources," said Mr Stocks.
"The funds raised today will allow us to continue our aggressive resource drilling campaign and deliver additional large tonnages into the project. We are currently drilling the Murphy South western extension and PIRSA have this week approved drilling over the Murphy South eastern extension. This work will further enhance our position as we continue our partnership discussions.
"I'd also like to acknowledge the support of our existing investors and the significant global institutions that have sought to increase their investment in our company as we progress towards ultimate project development," said Mr Stocks.
The funds raised will be used to:
- Continue the substantial drilling programmes at the Central Eyre Iron Project - Murphy South (west), Murphy South (east) and Hambidge;
- Continue drilling at the Gawler Iron Project;
- Continue feasibility investigations; and
- General working capital.
The placement is subject to shareholder approval on or about the 25 July 2011. A separate Notice of Meeting will shortly be sent to all shareholders.
About Iron Road Limited
Iron Road Limited (ASX:IRD) is an Australia-based company. The Company is engaged in exploration and evaluation of its iron ore ground holdings. Its projects include the Central Eyre Iron project, Gawler Iron project and Windarling Iron project. The Central Eyre Iron Project consists of three distinct prospects: Warramboo, Kopi and Hambidge. The Company focuses on establishing a resource inventory that underpins a 5 to 10 metric tons per annum (Mtpa) magnetite export operation. It contains magnetite-bearing gneiss units with a cumulative strike length. Gawler Iron project includes over ten areas of known iron occurrences, including the Mt Christie deposit. A total of 252 in-situ rock chip and grab samples from 10 localities at the West Gawler project returned an average grade of 53.4% Fe. The Company developed a stage plan of ground work on Windarling project.
Iron Road Limited