IronClad to raise $26m for Wilcherry

IronClad Mining hopes to raise $28.6 million via a 15 per cent placement and a renounceable rights issue to advance its Wilcherry Hill Iron project in South Australia to production.

The company is planning to raise the funds via two tranches.

The first tranche of $5.9 million by way of a 15 per cent placement of 7.9 million ordinary shares at 75 cents each was successfully completed on December 14.

The placement was made to institutional and sophisticated investors through Phillip Capital Australia, a partner of Intersuisse.

IronClad hopes to raise $22.7 million via a renounceable rights issue of 30.4 million ordinary shares at 75 cents each.

"This is a major milestone for the company which has been working for the last year on the Wilcherry Hill Direct Shipping Ore magnetite feasibility study, and is now a step closer to production in 2011," the company said in a statement to the Australian Securities Exchange.

"I am greatly encouraged by the response to the placement and by the fact that we can now include institutional investors on our register for the first time since listing 3.5 years ago," said Iron Clad executive chairman Ian Finch.

"It is a positive sign from investors that they have confidence in the team at IronClad and share our high aspirations for the Wilcherry Hill project in the future.

"The funds raised through this capital raising will allow IronClad to become a premiere iron ore mining house in South Australia," said Mr Finch.