IronClad Mining Ltd. : Capital Raising
02/16/2012| 03:02am US/Eastern
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IronClad Mining Limited (ASX: IFE) has continued its
successful self-funding policy for development of its
Wilcherry Hill iron ore project in South Australia with the
announcement today of a further $3 million capital
raising.
Proceeds of the latest raising - a placement of
3,500,000 shares at 85c per share to a number of
sophisticated Australian investors - will be used, together
with funds IronClad already has at hand, to pay a $5.8
million environmental bond to the South Australian Government
for the Company's Wilcherry Hill project in S.A.'s
Eyre Peninsula. Payment of the bond is part of the process
required for IronClad to begin mining under its Program for
Environmental Protection and Rehabilitation (PEPR), approved
by the SA Government late last year.
The $2.975 million share placement was organised by
Cygnet Capital, and follows a $6 million placement in January
to global investment group, New Page Investments
Limited.
IronClad believes a further $11 million may be raised
by the end of March, with options in the Company - expiring
on 30 March 2012 - likely to be exercised by increasingly
strong support from investors,
"Growing national and international investor
interest in our Company and our Joint Venture partner in the
Wilcherry Hill project, Trafford Resources, is providing
substantial support for the companies and their
shareholders," IronClad Mining Non-Executive Chairman,
Mr Ian Finch, said today.
"The funds from this capital raising, together
with other cash the Company already has, will be used to pay
the S.A. Government's environmental bond, for Wilcherry
Hill, which remains on target to commence maiden production
in the current March quarter," he said. "Since a
number of the 'early works' capital costs have
already been spent - including construction of our $5 million
accommodation village at nearby Kimba - most of the
requirements for Stage One of the project have now been
achieved".
"Debt financing through Australian and
international financial institutions is expected to be in
place over the next few months".
"This will allow us to fast track the next stage
of our project - the designing and construction of the
gravity circuit".
"It will also allow us to commence feasibility
studies on our massive Hercules project, in close proximity
to Wilcherry Hill, which is the long term future of the
Company".
Mr Finch said Stage One of the Wilcherry Hill project
is on target to commence maiden production in the current
March quarter, with inaugural exports to be achieved in the
June quarter of this year.
He said the Company expected to export about one
million tonnes in its first full year of production,
increasing to two million tonnes in its second year.
Thereafter, IronClad expects to steadily increase
production to between 10-12 million tonnes per annum by 2016,
Mr Finch said.
MEDIA CONTACT:
Sean Whittington
Field Public Relations
(08) 8234 9555 or (0412) 591 520
About the Wilcherry Hill iron ore project
The Wilcherry Hill iron ore project - an 80:20 Joint
Venture between IronClad Mining Limited (ASX - IFE) and its
associated company, Trafford Resources Limited (ASX- TRF) -
is on track to commence shipments of Direct Shipping Ore
(DSO) for sale to international steel mills in the second
quarter of the 2012 calendar year.
The first two years of production from Stage One of the
Wilcherry Hill project has been sold to the steel mills under
a comprehensive sales contract and marketing
agreement.
Additionally, 50% of year 3 and 4's forecast
production has been contracted for sale through an off-take
agreement with Hong Kong based company New Page Investments
Limited.
Stage One of the project involves production of one
million tonnes per annum (Mtpa) of DSO magnetite, increasing
to 2 Mtpa in the project's second year of
operation.
Stage Two of the Wilcherry Hill Project involves a
further increase in production to 4 to 5 Mtpa of iron ore by
combining Wilcherry Hill magnetite concentrate with the DSO
product.
Stage Three includes the exploration and development of
the joint venture's separate Hercules Project, 15
kilometres south east of Wilcherry Hill, which has an
inferred and indicated JORC classification of 198 Mt, and is
expected to increase output from Ironclad's operations to
10-12 Mtpa by 2015.
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IronClad Mining acknowledges that the potential
quantity and grade of the in-ground extension to the
resource is conceptual in nature, that there has been
insufficient exploration to define a Mineral Resource and
that it is uncertain if further exploration will result
in the determination of a Mineral Resource.
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