Adelaide, Sep 28, 2006 AEST (ABN Newswire) - FerrAus Limited (ASX: FRS) is pleased to announce a share placement of 6,275,000 fully paid ordinary shares at 41.5 cents per share to raise A$2,604,125 before expenses.
The placement has been made to a select group of Australian and international professional investors including two U.S.-based financial institutions and clients of Bell Potter Securities.
The placement closed with strong interest beyond the Company's capacity to accept applications.
"Although not unexpected, we are nonetheless delighted with the strong response to this placement - particularly from offshore", said Managing Director, David Turvey. "It emphasises the strong potential value that international investors see in our projects and exploration portfolio and highlights the confidence and credibility in our development plans moving forward."
The funds raised will be applied to resource evaluation and mine development planning at the Robertson Range iron ore project, exploration on the Davidson Creek iron ore project, regional exploration of the Enachedong manganese project and working capital.
In accordance with Listing Rule 3.10.3, the Company provides the following details of the placement shares:-
Class of Securities : Fully paid ordinary shares.Number to be Issued : 6,275,000Principal Terms of Securities : The shares will carry standard rights applicable to quoted ordinary shares in the Company and will, from the date of issue, rank equally with fully paid quoted ordinary shares currently on issue.Issue Price : 41.5 cents per share.Purpose of Issue : Funds raised will be used for exploration, resource evaluation, mine development planning and working capital.Shareholder Approval : The Company will not seek shareholder approval prior to the issue of the 6,275,000 placement shares, as approval for this issue is not required by the Listing Rules.
The Company intends to subsequently seek approval of this issue at a general meeting pursuant to Listing Rule 7.4 (subsequent approval of issue of securities).
Issue to Class : The issue is not being made to a class of security holders.
As the issue is to sophisticated or professional investors, it will not require disclosure under the Corporations Act.
Contact
Kevin Skinner
Senior Consultant
FIELD PUBLIC RELATIONS
231 South Road
MILE END SA 5031
Tel: (08) 8234 9555
Fax: (08) 8234 9566
Mob: 0414 822 631
kevin@fieldpr.com.au
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