Binding commitments have been received for a placement of 5 million shares at A$0.10 per share, representing a 20.7% premium to the 30 day volume weighted average price of the company's shares.
The new funds will add to the nearly A$4 million in cash Mindax held at the end of the December quarter 2012 and will provide additional working capital.
Dr Steve Ward, managing director, commented: "This is further evidence of growing confidence in the company. The funds will enable us to continue to build momentum on our project activities."
Mindax is currently in discussions with a strategic partner to fast track development of the Mt Forrest Iron Project in Western Australia.
Located in the northern part of the Yilgarn Iron Province, Mindax's Mt Forrest Iron Ore project is 150 kilometres north-west of the railway line at Menzies which connects with the Port of Esperance iron ore export shipping facility.
The discussions involve the feasibility and development of the direct shipping ore component of the Mt Forrest Iron Project.
Mindax's emphasis is on developing a low phosphorus direct shipping ore export operation which could generate early cash-flows to enhance the economics of a subsequent magnetite operation.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.