Eastern Iron completes $1.26 million raising

THE BOURSE WHISPERER: Eastern Iron (ASX:EFE) has raised $1.26 million via a placement of 22.8 million shares at 5.5 cents per share.

The price represents a 28 per cent premium to the average closing price for the week prior to the placement.

Eastern Iron said the funds raised by the raising will go towards the scoping study currently under way at Nowa Nowa, which is due for completion in November.

Should the results of the study be sufficiently encouraging, the company said it plans to move the project forward into the first stage of a feasibility study including further resource drilling and initiating the permitting and approvals processes.

“We are pleased to have completed a capital raising at a significant premium to the share price,” Eastern Iron managing director Greg De Ross said in the company’s announcement to the Australian Securities Exchange.

“This is reflective of the strength of the growing potential resource base at the company’s Nowa Nowa project and the now proven strategy to identify small tonnage, high grade iron projects with a rapid development timeframe.

“The funding will be used to complete the scoping study at Nowa Nowa due for completion in the December quarter.”