Radar to repay debt with $5.5m raising

Radar Iron and Victory Mining have struck a deal to raise a total $5.5 million to fund the $2.9 million debt repayment for the acquisition of Radar’s Yerecoin project.

The capital raised will also be used for continued technical studies at Yerecoin, located about 150km north-east of Perth, to develop the project to a mining stage.

The capital raising includes a $900,000 placement of 26.1 million shares at 3.5 cents per share to Victory and a $4.6 million one-for-one non-renounceable rights issue to be fully underwritten by Victory.

Upon completion of the transaction, private investment firm Victory will hold almost 20 per cent of Radar’s issued capital, with both the placement and the rights issue subject to shareholder approval.

Radar will lodge a prospectus for the rights issue indicating the offer price, being not less than 3.5 cents per share.

If approved, the placement is expected to be finalised by mid-October and the rights issue by late November.

The Rader share price remained unchanged for the day at 3 cents per share at 12.30pm.