26/11/2007 - 08:33

Northern Iron Ltd launches $140m IPO

26/11/2007 - 08:33

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West Perth-based Northern Iron Ltd has aims to raise up to $140 million in its initial public offer to fund acquisitions and exploration over its Sydvaranger Iron project in northern Norway.

West Perth-based Northern Iron Ltd has aims to raise up to $140 million in its initial public offer to fund acquisitions and exploration over its Sydvaranger Iron project in northern Norway.

The company will issue 65 million shares, representing 39.4 per cent of total issued capital, in the offer - with shares to be priced from between $1.75 to $2.15. The company is seeking to raise a minimum of $113.8 million.

The purpose of the Offer is to raise funds for the company's redevelopment plan for the project, working capital commitments and repayment of existing working capital loans, studies into project expansion and the potential construction of a pellet plant, as well as exploration.

Northern Iron will be 51.5 per cent owned by Tschudi Mining, a subsidiary of the Tschudi Shipping company AS which owns the mining assets the company aims to acquire.
The company will make an institutional offer and a priority offer to Australian and Norwegian investors alongside its retail offer.

The company is chaired by Neil Hamilton, who is joined on the board by Felix Tschudi, Mick McMullen, Ashwath Mehra, Peter Larsen, Peter Bilbe, and David Griffiths. Bob Anderson serves as company secretary.

Macquarie Equity Capital Markets Ltd serves as lead manager to the deal, while HLB Mann Judd serves as auditor and investigating accountant. Minter Ellison provide legal advice to the firm.

The retail offer, which opened on November 21, will close on December 5, with the Institutional Offfer to open December 6 and close December 7.

 

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