IRON ROAD is aiming to raise $13.9 million to fund its share of the Cape Hardy Stage 1 port development costs by way of a 1 for 7 non-renounceable entitlement offer.
In a letter to shareholders on Thursday last week, Iron Road said up to 99 million shares would be issued at 14 cents apiece today, with the company's largest shareholder Sentient Fund IV already undertaken to fully participate in the entitlement offer to the tune of $8.7m to retire most of the $9m debt owing to Sentient.
Iron Road's directors had also agreed to fully participate meaning commitments for $9m, or about 65 per cent, of entitlements had been received from eligible shareholders.
The company announced in September that Macquarie Capital had signed a joint development agreement with itself and EP Co-operative Bulk Handling as part of stage 1 of the $250-million multi-commodity and multi-user deep-water port project on the Eyre Peninsula.
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The proposed Cape Hardy port is expected to attract a quarter of a billion dollars in investment and is planned to export minerals, agricultural exports and hydrogen.
Iron Road also plans to use some of the $13.9m in funds to maintain the Central Eyre Iron Project mining lease, repay debt and for corporate expenses and costs of the entitlement offer.
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