Western Australian iron ore miner Batavia Mining Limited has announced that it has completed its AU$4.8 million (US$4.17 million) capital raising by issuing shares to Jiangyin Huaxi Steel Co Ltd. The capital raising will enable the miner to focus on an exploration program at the Roper River iron ore project in the northern territory of Western Australia.
The placement, which was approved by Batavia shareholders, comprises 20 million shares and 10 million listed options. Batavia has also signed a heads of agreement with Jiangyin Huaxi Steel for potential off-take arrangements for 1 million mt per annum for a period of five years.
Batavia has an option until July 29, 2010 to acquire the abovementioned potentially large project which has an exploration target of 400-500 million mt grading +40 percent Fe, including 80-150 million mt of direct shipping ore (DSO) grading 50-60 percent Fe.