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.

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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.

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