Iron Road launches IPO and acquires Warramboo project

Iron Road Limited, the Australian iron ore exploration company formed at the end of last year, has launched an Initial Public Offering comprising 25 million shares at 20 cents per share.

The firm has already secured private equity investment from Sentient Group, which will hold 19.9% of the issued stock upon listing.

Shortly after listing, Iron Road will complete an entitlement issue of options to its shareholders on the basis of one option for every two Iron Road shares held.

The company expects to commence trading on the Australian Stock Exchange in early June.

The $5 million fund raising is in connection with Iron Road’s acquisition of the Warramboo iron project on the Eyre Peninsula of South Australia and will increase the firm’s market capitalisation to $10.83 million.

The Warramboo project, which is being acquired from Adelaide Resources, contains extensive magnetite anomalies with a cumulative strike length in excess of 50 kilometres.

Initially, Iron Road will focus on exploration of already delineated magnetite iron ore targets and commence a scoping study for potential development.

According to Iron Road’s managing director, Andrew Stocks, Warramboo’s high iron grades will enable the project’s concentrate to be used in the production of feedstock for DRI plants, as well as blast furnace feed.

Iron Road has also announced that it has acquired a significant land holding in the highly prospective Windarling area of Western Australia.