Territory raises $30m in placement to Crawley Resources

06 March 2007 | 03:58 Code : 13071 Geoscience events
The placement price represents a premium of 35 percent above Territory Iron’s....

  Northern Territory-based iron ore company, Territory Iron has agreed to place 60 million shares with Crawley Resources at 50 cents per share to raise $30m.

The placement price represents a premium of 35 percent above Territory Iron’s average share price of 37 cents during the last two months. The placement is expected to fully fund the estimated remaining costs to bring the company’s Frances Creek iron ore project into production, as well as to allow exploration of the company’s tenements in the Northern Territory to be accelerated. The company expects to be in production by the end of May, with shipping scheduled in August. Territory Iron aims to produce 1.5 million tonnes per annum at full production. Crawley is a company jointly owned by Hong Kong-based, Noble Group Limited and its associates (70%) and Michael Kiernan (30%). Under the terms of the agreement, the new shares will be allotted in two tranches. The first tranche, comprising 20 million fully paid ordinary shares to raise $10m, will be issued under the company’s 15 percent placement capacity.The second tranche, comprising 40 million fully paid ordinary shares to raise $20m, requires shareholder approval, and is expected to be completed within three business days of the company receiving that approval. Tranche 1 will give Crawley an initial holding in Territory Iron of 12.9 percent, with tranche 2 increasing Crawley’s holding to 30.8 percent.Upon completion of Tranche 1, Mr Kiernan will be invited to join Territory Iron’s Board in a non-executive director capacity. Territory Iron Managing Director, Doug Stewart said this placement to Crawley, and the ensuing appointment of Mr Kiernan to Territory Iron’s Board, would not only provide the company with funding, but brought onboard a respected, successful and energetic miner to further develop the company. “The Board and management of Territory Iron look forward to the opportunity of working with Mr Kiernan and welcomes Crawley to its register and Crawley’s vote of confidence in the Frances Creek iron ore project,” Mr Stewart said.

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