Sherwin Iron Limited (ASX: SHD) is pleased to announce that it has successfully undertaken a $8.5 million share placement at 16 cents a share to institutional and sophisticated investors as part of its strategy to accelerate drilling and development of its Roper River Iron Ore Project (Project) in the Northern Territory.
The Company has also reached agreement with its major shareholder, Mr. Jerry Ren, to amend the previously announced $4 million share placement to him so that it is on the same terms as the placement to new investors and is included in the total amount raised. The placement to Mr. Ren remains subject to shareholder approval.
In addition, the Company has agreed to offer a Share Purchase Plan (SPP) to enable eligible shareholders to apply for up to $10,000 of shares at 16 cents a share. A maximum of $2.5 million will be accepted under the SPP. Further details in relation to the SPP, including the timetable will be announced in due course.
Sherwin Iron intends to use the proceeds from the placement to:
- Accelerate the exploration program at the Roper River Iron Ore Project;
- Progress the ongoing project Feasibility Study, including Gulf of Carpentaria Scoping Study; and
- Provide general working capital.
The placement, which was undertaken by StoneBridge Group pursuant to Sherwin Iron’s capacity under ASX Listing Rule 7.1, received strong support from a number of institutional investors, and has resulted in new investors joining Sherwin Iron’s share register.
Sherwin Iron Managing Director Greg Bittar said the raising reflected strong support among existing and new investors, including a number of institutional investors, for the project.
“The proceeds will enable Sherwin Iron to advance the Project to the next stage with an expedited drilling program having already resumed and also allowing us to push ahead with the feasibility study,” Mr Bittar said.
"The early drilling at Sherwin Creek is focused on the northern areas of the Project where our exploration target is 300-350Mt @ 40-48% Fe. The first drill holes have intersected continuous near surface oolitic hematite which is identical mineralisation to the Hodgson Downs deposits located approximately 70 km to the south west."
Image by Sherwin Iron Limited