THE BOURSE WHISPERER: Winmar Resources has completed a $3 million placement to PXSteel International Asia Corporation Limited.
Winmar advised the market it has now received funds from the second tranche of the placement, being $820,000 via the issue of 4.1 million Winmar shares at 20 cents per share.
This represents a 100 per cent premium to Winmar’s share price, as of 16 May 2012.
Payment of the second tranche of the placement was subject to an independent expert’s report and shareholder approval, which was required as PXSteel’s shareholding in the company will now exceed 20 per cent.
Winmar said it will be using the funds to fast track the exploration program at the company’s Hamersley iron project, located in the Pilbara region of Western Australia.
Winmar’s Hamersley project. Source: Company web site.
The company recently commenced the next phase of drilling and metallurgical test work at the Hamersley project.
Winmar has a Joint Venture Agreement with Cazaly Iron, a wholly owned subsidiary of ASX-listed Cazaly Resources, for the Hamersley project.
Under the terms of the JV Agreement, Winmar is able to earn 51 per cent of the project by way of its exploration expenditure.
The Hamersley project is located in close proximity to Fortescue Metals’ Solomon project and Rio Tinto’s Marandoo and Brockman mines.
The project has a current JORC Inferred Resource of 241.6 million tonnes at 54.3 per cent iron, which includes a main CID zone of 169.1Mt at 55.6 per cent iron, and an Exploration Target of 350 to 400Mt at 54 to 56 per cent iron.