BC Iron in halt on capital raising plans

Shares in BC Iron have been placed in a trading halt as the company finalises details of a capital raising.

The iron ore hopeful said it expects to make an announcement by Friday.

Shares in BC Iron last traded at $1.27.

Earlier this month, BC Iron finalised a company-making deal with Fortescue Metals Group over the Nullagine iron ore project in the Pilbara.

Under the deal, both companies will form a joint venture to develop Nullagine, with each party to contribute $10 million towards the project.

BC Iron will manage the JV, including operations, road haulage, marketing and ore sales while FMG will manage all rail and port operations.

Nullagine has a capital cost of between $35 million and $50 million and will have an initial throughput rate of 1.5 million tonnes per annum.

At the end of the March quarter, BC Iron had $3.9 million in cash.