Ascot Resources (ASX:AZQ) has raised about $300,000 through an issue of shares to Resource Capital Fund V in relation to the acquisition of the Wonmunna Iron Ore Project in Western Australia's Pilbara region.
The issue of 1,196,765 shares priced at $0.25 each satisfies the Tranche 2 shares subscribed for by RCF.
Wonmunna is adjacent to leading iron ore producers and existing infrastructure.
Geological cross sections suggest the existence and relative accessibility of higher grade product - higher grade intersections (+60% Fe) are evident in all deposits.
Mineralisation occurs in the same ore-body as West Angelas, operated by Rio Tinto Iron Ore.
With the completion of the capital raising, Ascot continues to secure critical path project approvals to meet its development timelines.
It seeks to deliver Wonmunna to budget and under the lowest possible capital and operating cost structure.
In October, the company started a geotechnical drilling program to finalise the submission of the Mining Proposal to the Department of Mines and Petroleum.
Highlighting the potential of the project, global commodities trader the Gunvor Group had invested $5 million at a premium, with cornerstone investor RCF matching this investment.
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