- Tombador Iron (TI1) has raised $20 million via a heavily oversubscribed share placement
- More than 253 million fully paid ordinary shares were issued to institutional and sophisticated investors at 7.9 cents — representing a 13.4 per cent discount to the five-day volume-weighted average price
- Tombador will use the funds to speed up production of high-grade iron ore from its namesake project in Brazil
- Just last week the company received the first assay results from the project with grades peaking at 68.1 per cent iron
- Drilling at the project is aiming to define high-grade hematite mineralisation on top of the Tombador Hill, where high-grade iron has been previously intersected
- Tombador Iron has ended the day 9.2 per cent in the red with shares trading at 7.9 cents
Tombador Iron (TI1) has raised $20 million via a heavily oversubscribed share placement.
All up, 253,164,557 fully paid ordinary shares were issued to new and existing institutional and sophisticated investors at 7.9 cents.
This price represents a 9.2 per cent discount to Tombador’s last closing price of 8.7 cents from February 26 and a 13.4 per cent discount to the five-day volume-weighted average price.
Shares are expected to be issued on March 3.
Tombador will use the funds to speed up production of high-grade iron ore from its Tombador Iron Project in Brazil, purchase drilling equipment and bring forward licensing and purchasing activities.
The Tombador Project lies in Bahia State, Brazil, the world’s second-largest exporter of iron ore.
Just last week, Tombador revealed it had received the first assay results from the project.
Infill drilling was undertaken to define high-grade hematite mineralisation on top of the Tombador Hill where up to 65 per cent iron has been previously intersected.
Results peaked at 68.1 per cent iron, and the company will use them to define the final pit wall in order to plan a decrease of the hill top.
Drilling is continuing and Tombador will update the market as work progresses.
“Tombador Iron has moved very rapidly to install all mining infrastructure required to allow for production,” CEO Gabriel Olivia said.
“The additional funds raised will now enable the project to accelerate production and bring forward the planned benefaction project,” he added.
Tombador Iron has ended the day 9.2 per cent in the red with shares trading at 7.9 cents in a $161.9 million market cap.