ASX-listed South American Iron & Steel Corporation (ASX: SAY) has raised $942,392 via a placement of 23,559,804 shares at $0.04 per share to sophisticated investors.
An additional placement of up to $1 million at $0.04 per share will be made to sophisticated investors subject to shareholder approval.
The company has in place conditional funding agreements with sophisticated investors to raise more funds via a placement and loan issue.
The loan instruments to be issued to sophisticated investors will have a value of $557,608. These will automatically convert to fully paid ordinary shares at $0.04 per share upon shareholder approval based on the acquisition of the remaining 90% interest in the Quince Project and the conversion of the loan instruments to shares.
In a statement, the company said it is still in discussions with Jiangsu Changqiang Iron & Steel Co., regarding an offtake agreement.
South American Iron & Steel currently operates iron sands projects in Ecuador and Chile, with onshore and offshore tenements totalling 129,354 hectare. The company's objective is to beneficiate the sands to valuable heavy metals (VHM) and become a fully integrated producer of steel, titanium slag and vanadium.