Radar Iron (ASX: RAD) is now well placed financially to continue exploration at its Johnston Range and Die Hardy iron ore exploration projects in the Yilgarn region and work towards defining a hematite and magnetite resource following a successful A$2.48 million capital raising.
Managing director Jon Lea said, “This is a major achievement for the company and illustrates the support for the company in capital markets.
“The money raised will allow the company to comfortably continue exploration at Johnston Range and Die Hardy with a view of defining hematite and magnetite resources in the near future.”
Radar will place nearly 8.3 million shares with sophisticated investors at a cost of $0.30 per share, the equivalent of Radar’s volume weighted average price for the five days prior to the company’s shares being placed in a trading halt.
The successful placement positions Radar well to fund its ongoing drilling and exploration campaigns and provides a good platform to launch into what is expected to be a very active 2012 for the company.
A recent review by independent geophysical consultants, Core Geophysics of Perth, delivered an exploration potential at Die Hardy of a primary magnetite banded iron formation of 0.83 to 1.38 billion tonnes at 25% to 35% iron.
Radar is aiming to release a resource estimate in November with a view to beginning feasibility studies and project development in the December quarter.
Meanwhile, Radar has outlined at the Johnston Range project an exploration potential for magnetite of 4.0 to 6.7 billion tonnes at 20% to 45% iron, which is based on significant magnetite being intersected by drilling.
Both projects are well located near important infrastructure, such as open access rail 90-130 kilometres to the south, which has the potential to be upgraded to suit potential developments, and the Esperance and Kwinana ports.