IronClad Mining has announced a further $3 million capital raising to fund the development of the Wilcherry Hill iron ore project in South Australia.
Proceeds of the placement, priced at 85 cents per share, will be combined with existing cash reserves to pay a $5.8 million environmental bond to the South Australian government for Wilcherry Hill.
The Wilcherry Hill mine remains on target to commence production in the March quarter, the company said.
IronClad is targeting one million tonnes of iron ore exported in the first full year of production from the project, ramping up to two million tonnes in the second year.
By 2016, IronClad is targeting production to reach between 10 million and 12 million tonnes of iron ore.
The $2.97 million placement was undertaken by Cygnet Capital, and follows a $6 million placement to New page Investments in January.
The company said it had plans to raise a further $11 million by the end of march through options likely to be exercised by investors.
“Growing national and international investor interest in our company and our joint venture partner in the Wilcherry Hill project, Trafford Resources, is providing substantial support for the companies and their shareholders,” IronClad non-executive chairman Ian Finch said.
At 12:45PM WST, IronClad stocks were down half a per cent, trading at 88 cents.
