Shaw River Resources has launched a $25 million share placement to raise funds for the development of its manganese assets in the Pilbara, Namibia and Ghana.
The company said it would issue 125 million shares at 20 cents per share to sophisticated and institutional clients of Hartleys Limited and its major shareholder, Atlas Iron.
Atlas holds a 45.4 per cent stake in Shaw River.
Shaw River will use the funds raised for drilling programs and a feasibility study for its Otjozondu manganese project in Namibia, and additional drilling and scoping studies at its Baramine project in the Pilbara and manganese projects in Ghana.
Shaw River managing director Vincent Algar said the placement would accelerate the development of Otjozondu, which would generate strong cash-flow by mid-2012.
"We are delighted by the strong international support received for the placement which will see the introduction of a number of the world's largest and most well respected institutional investors onto the Shaw River register, and by the confidence demonstrated by our current shareholders," Mr. Algar said.
"The strength of interest in the Placement ensures Shaw River remains a well funded manganese development company that continues to execute its strategy of building a global manganese business."
"Feasibility studies are underway at the Otjo Project Namibia and drilling will commence in early May 2011.
"In Australia drilling will commence at Baramine manganese project in late April 2011."
AT 9:22AM (WST) Shaw River stocks had dropped 2.1 per cent to trade at 22 cents.
