Constance Iron plans to raise about $105 million to float on the London Stock Exchange and advance its projects, including magnetite production in Norseman.
Constance Iron plans to raise about $105 million to float on the London Stock Exchange (FTSE) and advance its projects, including magnetite production in Norseman.
The Sydney-based company has a 65 per cent net profit interest in the Norseman Iron Ore project in Western Australia, which is owned by Tulla Resources.
Constance Iron announced it was considering an initial public offering and intended to publish a registration document.
It was also intending to float on the FTSE, yesterday’s announcement said.
The company is targeting to raise gross proceeds of at least £60 million, roughly equivalent to $A105 million.
“The net proceeds of the placing (if any) will be primarily utilised to fund the exploration and development to production of the Norseman iron ore project and exploration of the Constance Range iron ore project,” its statement said.
The company also has a 100 per cent interest in the Constance Range iron ore project, north-west of Mount Isa in Queensland.
Constance Iron’s statement said the Norseman project was capable of producing up to 66 per cent high-grade concentrate of iron through a wet beneficiation process.
“The Norseman iron ore project’s life of mine has been modelled out to an estimated 30 years on the current resource,” the statement said.
“The company’s directors believe that Norseman has an opportunity for exploration upside through a planned pipeline of exploration.”
According to Constance Iron, an HGS Australia report has identified the Norseman project to have an exploration potential of between 362 million tonnes and 938mt magnetite at an average global resource grade of 35 per cent iron.
“The IPO of Constance Iron on the London Stock Exchange provides investors with exposure to a developer of targeted high-grade, low-impurity magnetite iron ore, an essential component to the production of ‘Green Steel’, which is necessary as the world continues to develop and urbanise in an environment increasingly seeking reduced emissions,” Constance Iron chief executive David McKenzie said.
“Our proximity to existing infrastructure and plan to use dry magnetic separation means that we have an initial low-capex model with a short development timeline.
“We believe that these advantages when combined with a product, for which we expect there to be high global demand, will enable us to generate returns for shareholders following the IPO.”
Constance Iron said its immediate strategy was to bring the Norseman iron ore project to production through a dry magnetic separation process while starting stage two, which includes commissioning a wet beneficiation plant.
