PERTH (miningweekly.com) – Junior Fenix Resources is looking to raise A$15-million through a share placement to develop Iron Ridge project, in Western Australia, targeting first direct shipping ore (DSO) shipments in early 2021.
The company will issue 103.5-million shares, at a price of 14.5c each, to existing and new sophisticated and professional investors.
The shares will be issued in two tranches, with the first tranche consisting of more than 68.9-million shares to raise an initial A$10-million. The second tranche of 34.5-million shares will be subject to shareholder approval.
“We are very pleased with the strong support from a number of high quality institutional investors as the company raises the capital required to commence development of its Iron Ridge project in Western Australia. We are proud to welcome several new, high quality institutional investors located both domestically and internationally,” said Fenix MD Rob Brierley.
“Iron Ridge is a simple DSO project which is set to generate very strong cashflow on the back of its shallow ore, proximity to port, high grades and robust margins based on the strong prevailing iron-ore pricing environment,” he added.
A 2019 feasibility study estimated that the project would produce some 1.25-million tons a year over a six-and-a-half-year mine life, and would require a capital investment of A$11.9-million.
Brierly said on Thursday that the share placement meant Fenix was on track to start the development of the iron-ore project, with the company targeting first DSO shipments in early 2021.
Funds raised from the placement will also go towards optimising the Iron Ridge project, and towards corporate overheads and working capital.