IronClad raises $6M on eve of construction

THE BOURSE WHISPERER: As it prepares to begin construction work on its Wilcherry Hill mine on the Eyre Peninsula in South Australia IronClad has announced the raising of $6 million.

The cash has been raised through the placement of 7.5 million shares with Hong Kong-based resources industry investor, New Page Investments.

The agreed price for the placement is 80 cents per share, which represents a premium of 20% on the 10th January 2012 closing price of 66.5 cents for IronClad shares on the Australian Securities Exchange.

New Page Investments is the major shareholder in China-based global steel trading, distribution, processing and manufacturing company, Novo Group, which is dual-listed on the Hong Kong and Singapore stock exchanges, and already has investments in the Australian iron ore industry.

“The successful conclusion of this share placement marks another significant milestone in what will be a defining year for the Company and its shareholders, and in the development of our Wilcherry Hill asset,” IronClad Mining executive Chairman Ian Finch said in the company’s announcement to the Australian Securities Exchange.

“Funds raised by the New Page share placement will be used to finance start-up works at the Wilcherry Hill site – due to commence later this month after the imminent awarding and signing of key infrastructure and mining contracts.”

IronClad said its maiden production from the mine is due to commence in the current March quarter, with the first shipment of iron ore on track to be exported to Chinese customers in the June quarter.

To add some extra sparkle to his day, Finch also advised the market that the company was close to formalising another off-take agreement for production from the Wilcherry Hill project.

IronClad said it expects negotiations for the additional off-take agreement to be finalised later this week and would involve 50 per cent of all iron ore produced by the IronClad-Trafford Resources joint venture in the first four years of operations.