IronClad Mining (ASX: IFE) has been granted a trading halt by the ASX pending a capital raising announcement, with the company's shares placed in pre-open.
IronClad said the funding will be used for the commencement of production at its magnetite iron joint venture in Australia.
Earlier in the month IronClad announced that a offtake agreement for iron ore from its Wilcherry Hill project had been secured, with the four deal for up to 50% of annual iron ore production from the project.
Wilcherry Hill is on track for maiden production in the March quarter of 2012.
The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Thursday 16 February.