- Mineral resources company Fe (FEL) has received firm commitments to undertake a $5.5 million placement
- The funds will be raised through the issue of roughly 123.4 million shares to sophisticated and professional investors at 4.5 cents
- This price represents a 13.5 per cent discount to Fe’s last closing price of 5.2 cents on February 17
- Following the exercise of 7.15 million shares, Fe will issue 5.65 million shares to raise an additional $128,000
- Once received, Fe will use the money to develop the Wiluna West JWD Iron Ore Project and evaluate work at the Yarram Iron Ore Project
- Fe has ended the day 3.85 per cent in the red with shares trading at 5 cents
Mineral resources company Fe (FEL) has received firm commitments to undertake a $5.5 million placement.
The company entered a trading halt on February 16 but did not disclose how much it intended to raise or what it would use the funds for.
The funds will be raised through the issue of roughly 123.4 million shares to sophisticated and professional investors at 4.5 cents.
This price represents a 13.5 per cent discount to Fe’s last closing price of 5.2 cents on February 17, and a 15.2 per cent discount to the 10-day volume-weighted average price.
Fe will also issue 5.65 million fully-paid ordinary shares, following the exercise of 4.15 million unlisted options exercisable at 0.2 cents and 1.5 million unlisted options exercisable at 0.3 cents, to raise $128,000.
Once received, Fe will use the money to develop the Wiluna West JWD Iron Ore Project and evaluate work at the Yarram Iron Ore Project.
“We are pleased with the strong support for this raising and to welcome several significant Australian institutional investors to our register,” Executive Chairman Tony Sage said.
“Post this placement, the company has a cash balance in excess of $10 million which fully funds us to deliver the JWD project. We are making good progress on the JWD approval and development project streams and look forward to updating the market as milestones are ticked off in the coming weeks,” he added.
Fe has ended the day 3.85 per cent in the red with shares trading at 5 cents in a $28.78 million market cap.