Iron Ore Holdings to raise $21 million

Perth-based explorer Iron Ore Holdings Ltd is aiming to raise $21 million, before costs, through a renounceable rights issue to advance its projects.

A prospectus relating to the Rights Issue will be available after lodgement, on the ASX website and also on the Company's website.

The announcement is pasted below:

Iron Ore Holdings Ltd is pleased to announce a renounceable rights issue (Rights Issue) to raise approximately $21million before costs.

The Rights Issue will offer one new Share for every 2 Shares held at an issue price of $0.55 together with 1 free
attaching Listed Option for every 3 new shares subscribed for.

Conditional upon securing sub underwriters and the Company's major shareholder taking up its full entitlement the issue is to be underwritten by Hogan and Partners to the value of $12,751,750.

The major shareholder has indicated that it will take up its full entitlement and participate in the sub underwriting of any shortfall.

The Company will use the funds to advance its projects.