Cyclone Metals Ltd (ASX:CLE) has received firm commitments from institutional and sophisticated investors to raise $1.35 million through a placement of fully paid ordinary shares at an issue price of $0.0025 per share.
The company intends to apply the funds raised from the placement towards the proposed work program on the Block 103 Magnetite Iron Ore Project, costs of the Labrador transaction and for general working capital requirements.
Notably, Block 103 is the largest undeveloped magnetite iron ore project in the world having a historical mineral resource of 7,200 million tonnes at 29.2% iron.
The project is in the world-class Labrador Trough iron ore mining district of Canada. ‘The Trough’ has claimed a prominent place in the Canadian mining sector having produced more than 2 billion tonnes of ore over 50 years.
Cyclone expects that the completion of the Labrador transaction will occur once it receives the necessary shareholder approvals for the issue of the consideration shares.
