BC Iron raises $47m for Nullagine acquisition

BC Iron has raised $47 million from a share placement which will ensure the company has enough funds to complete the its acquisition of an additional 25 per cent stake in the Nullagine iron ore joint venture with Fortescue Metals Group.

The iron ore miner said the placement was priced at $3.04 per share, a 3.8 per cent premium to the company’s last closing share price of $2.93 on December 7.

BC Iron shares jumped on the ASX following the announcement, up 9.56 per cent at 12:40PM, WST, trading at $3.21.

“The placement was very well supported by both new and existing institutional shareholders,” managing director Mike Young said.

“This strong support is evidenced by the placement price achieved at a premium to BC Iron’s last closing price, affirming our view that this is a strategically compelling transaction which is expected to be accretive for all BC Iron shareholders.”

The placement was fully underwritten by Macquarie Capital.

BC Iron said it would now launch a $10 million share purchase plan for existing shareholders.

Further details will be released in due course, the company said.