Mineral Commodities has announced plans to raise $14.5 million through a placement a, to fund the development of its Tormin mineral sands project on the west coast of South Africa.
MRC announced today it would raise $10.25 million through a placement to institutional and sophisticated investors, priced at 8.5 cents per share.
A further $3.4 million in shares will be subscribed for by related parties of MRC, while $850,000 will be placed with a sophisticated investor following completion of the first placement.
London-based Mirabaud Securities is acting as broker and bookrunner to the capital raising.
The funds will be used for development at the Tormin project, and to repay existing short term debts.
The company is seeking to commence production at Tomrin in the second quarter of 2013.
"The capital raising was extremely well supported," chairman Mark Caruso said.
"It allows the company to immediately proceed with the development of the Tormin mineral sands project and to further its strategy of becoming a significant mineral sands producer."
MRC shares went into a trading halt prior to today's announcement, having last traded at 8.5 cents.