19/06/2009 - 08:48

New investor in BC Iron's $22m raising

19/06/2009 - 08:48

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BC Iron plans to raise $22 million from a sale of new shares, as it welcomes a new cornerstone investor, Regent Pacific Group, to its share register.

BC Iron plans to raise $22 million from a sale of new shares, as it welcomes a new cornerstone investor, Regent Pacific Group, to its share register.

The Perth company, which has an iron ore project in the Pilbara region of Western Australia, will offer 8.5 million shares to institutional investors at $1.10 each under a placement to raise $9.4 million.

It will also undertake a non-renounceable one-for-six right issue at the same price to raise $12.6 million, BC Iron said in a statement on Friday.

Regent Pacific Group will take up 6 million of the total shares on offer, resulting in a holding of 7.5 per cent in BC Iron.

"The board of BC Iron is pleased to welcome Regent Pacific Group Ltd as a cornerstone investor to the placement and entitlements issue, providing strong support for the raising," it said.

Regent Pacific is a Hong Kong-listed mining company with interests in copper, zinc and gold that also has interests in thermal coal assets in Asia, principally China.

It has interests in several listed companies including, Bannerman Resources, where recently it subscribed to $10 million worth of shares as part of the company's $37.5 million capital raising.


 

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