Iron Road has launched a $40 million capital raising to fund expanded development at its Central Eyre iron project in South Australia.
The explorer announced today a fully underwritten 31-for40 non-renounceable entitlement offer, priced at 32 cents per share.
Today's announcement follows Iron Road's $11.2 million capital raising in April, which was priced at 55 cents per share.
The company said the funds would be used to continue the Central Eyre project’s definitive feasibility study, which is evaluating annual production of 20 million tonnes of premium iron ore from the mine.
Iron Road said it would also use the proceeds to complete a scoping study for its smaller Gawler iron project, also in South Australia.
“Progress on the Central Eyre project has been significant and our decision to seek an expanded level of production has evolved the project considerably over the past year,” Iron Road managing director Andrew Stocks said.
“We are now working to open a new iron ore province in South Australia, with the potential to become a key player in the Australian iron ore industry.”
Iron Road stocks have plunged on the ASX today, and at 10:45AM, WST, the securities were trading down 16.2 per cent at 31 cents.