Jupiter Mines Limited (ASX:JMS), headed by former BHP Billiton chief Brian Gilbertson, has announced plans to raise $125 million for the expansion of South African and Western Australian resource projects, with the Netherlands' ABP subscribing for a $40 million private placement.
The private placement for Netherlands-based institutional investor ABP, one of the world's largest superannuation funds, is made at a price of $0.16 per share, and leaves ABP with an approximate 14% stake in Jupiter.
Jupiter will undertake a further 5 for 19 rights issue at the same price, which will permit current shareholders to participate in the raising of a further $85 million under conditions commensurate with the placement.
The planned uses of the funds include the start of the Tshipi manganese project in the fourth quarter of the year, full-scale test work on ore from the Mt. Ida magnetite project, two iron ore projects in Western Australia, and participation in the proposed expansion of Port Esperance and related infrastructure.
London-based mining veteran and Jupiter head Brian Gilbertson is already pushing hard for the development of the Port Esperance project, warning that development of iron ore mines in Western Australia's Yilgarn region will stall unless the project proceeds in earnest.