Centaurus Metals has completed a $26.2 million equity raising, with major shareholder Atlas Iron maintaining its 19.85 stake in the Brazil-focused iron ore miner and a US-based resources investment house emerging with a major interest.
Centaurus announced today the funds would be raised via a two-tranche share placement, with $11 million placed with Boston-based Liberty Metals & Mining, and $15.2 million in shares placed with Atlas Iron.
The placement was priced at 44 cents per share.
Following the placement, Liberty will hold a 12.95 per cent interest in Centaurus, while Atlas will maintain its current 19.85 per cent stake by investing a further $5.2 million.
Centaurus said the proceeds would be applied to progress development activities and feasibility studies at the Jambreiro iron ore mine in Brazil, as it progresses discussions with potential project financiers.
PCF Capital is acting as Centaurus’ debt advisor, with the company aiming to establish finance facilities before the end of the year.
Additional funds will also be applied to expand exploration and resource development at its other Brazilian iron ore projects, including Serra da Lontra.
Centaurus managing director Darren Gordon said the company was pleased with the strong support received from the capital raising.
“The Jambreiro Iron Project has progressed significantly over the last 12 months through the dedication and effort of our entire Brazilian-based team,” Mr Gordon said.
“this has put us in a position where we should be able to commence production as planned by the end of next year, at the targeted production rate of 2Mtpa.
“With Liberty Metals & Mining at Atlas as major shareholders we are in the enviable position of having the financial support of two key shareholder groups to significantly grow the company’s iron ore business in Brazil.”
At 12:10PM, WST, Centaurus stocks were up 3.45 per cent, at 45 cents.
