Gindalbie raises $175m
Iron ore company Gindalbie Metals Ltd announced it has successfully raised $175 million from institutional investors as part of its capital raising initiative to finance its Karara Project.
Gindalbie said $111.8 million was raised through conditional share placement of approximately 120.2 million shares at $0.93 per share to institutional investors. The additional $63.2 million was raised through a conditional share placement to Gindalbie's largest shareholder AnSteel at the same price.
Gindalbie intends to raise between $175 million and $206.4 million.
The ore company is also offering a Share Purchase Plan to raise up to $20 million. Each share is being offered at the same price as to the institutional placement.
Gindalbie said $107.5 million of the fund raised would be used to finance Gindalbie's equity share of the $430 million working capital requirements for its $2 billion Karara iron ore mine in Western Australia.
Managing director, Garret Dixon, said the proposed Resource Tax and its impact on the financial returns of major resource projects such as Karara had made investors extremely nervous and more uncertain in their investment decisions.
"Despite this issue, I am very pleased with the level of support shown by institutional investors and look forward to welcoming a number of significant new Australian and international institutional investors to the Gindalbie register," Mr Dixon said.
Gindalbie Metals fiscal 2009 profit came to $26.22 million.