West Australian explorer Legacy Iron Ore has raised $2.3 million to advance exploration at the company's Pilbara iron ore projects - Robertson Range and Hamersley and its newly acquired South Laverton gold project in Western Australia.
In a statement to the Australian Securities Exchange, the company announced it had obtained a commitment for the placement of 20.9 million fully paid ordinary shares at $0.11 each per share to raise $2.3 million with one for two free attaching listed options with an exercise price of $0.15 exercisable by 31 December 2009.
The issue price of $0.11 represents an 18% discount to the Company’s 5 day VWAP being $0.134. A
total of 3,500,000 options have been issued as a corporate advisory fee on the same terms and conditions. The Company expects to issue the Placement shares and options on or around 4 December 2009.
Shares issued under the Placement will rank equally with current issued capital of the Company and the funds raised will be used to accelerate exploration at its Pilbara iron ore projects - Robertson Range and Hamersley and its newly acquired South Laverton gold project in Western Australia.
The funds raised will also be utilised for general working capital and for identifying new project acquisitions which are considered to be a strategic fit with Legacy’s portfolio.
Legacy recently intensified both its gold and iron ore programs to fast-track potentially viable mining operations and capitalise on buoyant commodity prices.