BC Iron in halt on capital raising plans
You can purchase access to this special report or subscribe to Business News.
Subscribe to Business News.
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.