Iron Road's cornerstone shareholder, The Sentient Group, has had to take up the lion’s share of the company's $40 million entitlement issue, after existing retail shareholders subscribed for just 8 per cent of the stock on offer.
Iron Road today announced it had completed the issue of 124,9 million shares at a price of 32 cents each, with existing Iron Road shareholders taking up just over 10 million shares.
The Sentient Group, which manages more than $US2.3 billion in minerals and resource sector assets worldwide and was sub-underwriter to the offer, subscribed for more than 95 million shares.
Iron Road said the funds would be used to continue the Central Eyre project’s definitive feasibility study, which is evaluating annual production of 20 million tonnes of premium iron ore from the mine.
Today's announcement follows Iron Road's $11.2 million capital raising in April, which was priced at 55 cents per share.
Iron Road said it was pleased with the continued support of The Sentient Group, which has been part of its register since listing.
“We have seen an excellent show of support from major, long term minded investors for the company as we continue our development ambitions in South Australia, despite recent short term price fluctuation in the iron ore market,” managing director Andrew Stocks said.
“Iron Road has always taken what we consider to be a conservative position on long-term average iron ore prices in our studies, always expecting fluctuations in the short-term.
“The current short term outlook falls within those expectations and does not have an immediate impact on the project, nor does it change our view on the longer term average pricing regime relevant to a project with a potential of over 30 years.
At close of trade today, Iron Road stocks were steady at 30.5 cents.
