Flinders to raise $14.3m

Flinders Mines has announced plans to raise $14.3 million through a share placement and entitlement offer to fund a bankable feasibility study and further exploration on its Pilbara iron ore project.

The company said it had firm commitments for $6.8 million through the sale of 274 million shares in the placement.

It is also looking to raise $7.5 million in the sale of 300 million shares in the entitlement offer.

All shares will be priced at 2.5 cents per share.

Euroz Securities and BBY will joint lead manage the placement and underwrite the entitlement offer.

The capital raising will help Flinders conduct further drilling on the Pilbara project to upgrade the existing inferred resource to the indicated status, as well as provide detailed design studies with the feasibility study for the proposed mine.

It will also provide the company with working capital.

Flinders’ Pilbara mine is expected to cost up to $1.2 billion to develop.

This week, Flinders struck a deal with Rutila Resources and Todd Corporation, which are jointly evaluating the development of an integrated rail and port facility at a combined cost of $2.2 billion.

The proposed 200-kilometre railway line would link Flinders’ mine to a new transhipment port at Balla Balla, located midway between Cape Lambert and Port Hedland.

The port would service both Flinders mine and Rutila’s proposed iron ore mine, which is located close to the coast.

Flinders shares closed the day’s trade 6 per cent higher at 3 cents.