Australasian in halt on capital raising

Australasian Resources says it is finalising details of a capital raising, nearly two months after it was questioned by the Australian Securities Exchange over its cash reserves.

Shares in the iron ore hopeful were placed in a trading halt earlier today as it prepares to release details of a proposed capital raising.

The company did not say when it expects to come out of the trading halt. Shares in Australasia last traded at 46.5 cents.

Earlier this year, the ASX queried the company over its cash expenditure, with Australasian reporting that it had $2.3 million at the end of calendar 2009 after burning through $1.8 million through the December quarter.

Australasian is trying to secure financiers for its $2.7 billion Balmoral South iron ore project, which it bought off Clive Palmer's Mineralogy.