Flinders in $5m raising

South Australian mining junior Flinders Mines has announced a capital raising of $5 million, with the company to put the cash towards a loan repayment and tenement expenditure commitments at its Pilbara iron ore project.

The offer will be to existing shareholders on a one to ten basis, at a price of 1.7 cents per share.

That’s a discount of 32 per cent to the company’s 30-day volume-weighted average price across September.

Flinders is hoping to mine in an area north of Rio Tinto’s Brockman 2 and export through the mooted Balla Balla facility, 50 kilometres east of Cape Lambert.

During the previous financial year, Flinders had a couple of wins in advancing the project.

One was approval from the environmental minister for an expanded version of the project, while another was heritage approval from the aboriginal affairs minister.

New Zealand based Todd Corporation also made a move on Flinders in May, making an offer valuing the explorer at $74 million.

In addition to being the creditor which Flinders seeks to repay through the raising, Todd also holds a 52.6 per cent stake in the junior.

Shares in Flinders were unchanged at 1.8 cents each at the time of writing.