Become a customer

BC Iron raises $49.3m for Fortescue’s Nullagine shares

BC Iron has raised A$47 million ($49.3 million) through institutional placement of ordinary shares to partially fund its acquisition of a 25% stake in the Nullagine iron ore project.

December 12, 2012
By Generic people page

Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.

The final issue price under the placement was A$3.04 per share, a 3.8% premium to the last close of A$2.93 on Friday December 7, the miner said in a statement on Wednesday December 12.

BC Iron shares were traded at A$3.23 each at the time of writing, up 10.2% from Friday’s close.

Earlier this week, BC Iron agreed to buy half of Fortescue Metals Group’s 50% interest in the Nullagine project for a consideration of A$190 million.

Settlement of the share placement is expected on December 17 while the transaction with FMG is expected to complete on or about December 18, the statement noted.